- We have entered the corrective 4th wave after a nice bull run on the 3rd wave (see impulse waves in pink).
- Per Theory, if 2nd wave retracement is minimal, then 4th wave retracement will be much larger.
- In this scenario, the 2nd wave retraced to 0.236 fib. As such, we expect 4th wave retracement to be as much as 0.786 fib.
- Currently approaching the 0.382 fib and if that breaks down then expect to see it fall down to 0.5 fib and so forth.
- Ideal scenario would either be a bounce off of around 21800 which has significant support or off of 0.618 fib (i.e. 21219).
- Worst case would be a bounce off of 0.786 fib (i.e. 19751).
- From a big picture perspective, we are currently in wave 5 (in blue) of a larger wave 3 (in green).
- Note: Any future projections at a larger scale shown here will not accurately indicate when those waves will end or commence. Charts always need to be updated as we get more data from the market.
For informational purposes only and not deemed as financial advice.