Above All Retrace Resistance
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The instinct to look higher this morning was the correct one, but even I underestimated the strength of today's move over the regular trading hours session. Price is now above the .764 retrace as the last fib retracement measured from the decline off of the August high, and within a stone's throw of a new all-time high.
Therefore, the probability of this rally off of last week's low being a corrective b-wave still has diminished further, and continues to drop off the closer price comes to a retest of the August high. As noted in the afternoon alert, a break below 7790 is needed at a minimum to put any immediate downside path back on track.
Otherwise, if price continues to extend higher from here, 7860 and 7882 are now the next fib targets above, but that may only serve as temporary resistance for a 4th wave consolidation if price is following the bullish red count and does intend to eventually reach new highs.
