or at least another upleg towards 3700. Last time we updated that index we suggested we would see another leg down at minimum. We got that. Could have been the beginning of something more bearish but recent advance is not only impulsive ( the trend ) but has retraced enough of previous decline to leave us with waves overlapping indicating that at minimum we are in a bullish correction.
In other words if you are using the Elliot Wave Principle you cannot say for sure we started a new rally at 3466 i.e. a 5 waves affair with a minor correction in progress as wave 2 as shown on the chart BUT you can say with high confidence worst case scenario is we are in a bullish correction. The most bearish I could be for now is we would get another leg up towards 3700 in a B wave of a Flat that would be followed by a sharp C wave down just below recent low.
Markets are much more bullish that we all think. It's just it might start to get choppy. Hold on tight.
In other words if you are using the Elliot Wave Principle you cannot say for sure we started a new rally at 3466 i.e. a 5 waves affair with a minor correction in progress as wave 2 as shown on the chart BUT you can say with high confidence worst case scenario is we are in a bullish correction. The most bearish I could be for now is we would get another leg up towards 3700 in a B wave of a Flat that would be followed by a sharp C wave down just below recent low.
Markets are much more bullish that we all think. It's just it might start to get choppy. Hold on tight.
