A couple of scenarios (most probable first):
1. Teal:
The move down to 3150 is interpreted as a leading diagonal. Once we finish the upward zig-zag correction at around 4600 we will drop below 2000. The character of wave C in the upward zig-zag will be key in differentiating from the more bullish scenario (pink).
2. Pink:
The move down to 3150 is interpreted as the end of a larger wave C and marks the end of the bear market. We are currently retracing a bullish wave 1 which terminated at around 4200. After retracing to 3300-3400 we will enter wave 3 which should break 5000. This scenario is rejected if we move below the recent low at 3150.
3. Yellow:
The move down to 3150 is part of a running flat correction. We are currently in a smaller wave 1 of a wave 3 move down below 2000. This scenario is rejected if we move above 3600 again after retracing to 3300-3400.
Any information represented here is my opinion only and not intended to be used for financial gain. None of the information posted here is to be considered financial advice. Information posted here is strictly for entertainment purposes only. Please consult your financial professional before making any kind of investment. Investments can be very risky and any investor should educate themselves before investing by enlisting the help of a licensed financial professional. Past results are not indicative of future results in any construable way.
1. Teal:
The move down to 3150 is interpreted as a leading diagonal. Once we finish the upward zig-zag correction at around 4600 we will drop below 2000. The character of wave C in the upward zig-zag will be key in differentiating from the more bullish scenario (pink).
2. Pink:
The move down to 3150 is interpreted as the end of a larger wave C and marks the end of the bear market. We are currently retracing a bullish wave 1 which terminated at around 4200. After retracing to 3300-3400 we will enter wave 3 which should break 5000. This scenario is rejected if we move below the recent low at 3150.
3. Yellow:
The move down to 3150 is part of a running flat correction. We are currently in a smaller wave 1 of a wave 3 move down below 2000. This scenario is rejected if we move above 3600 again after retracing to 3300-3400.
Any information represented here is my opinion only and not intended to be used for financial gain. None of the information posted here is to be considered financial advice. Information posted here is strictly for entertainment purposes only. Please consult your financial professional before making any kind of investment. Investments can be very risky and any investor should educate themselves before investing by enlisting the help of a licensed financial professional. Past results are not indicative of future results in any construable way.
