Expectation for b-wave pullback satisfied, but not clearly complete yet
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In the pre-market update this morning I noted that price had reached the .500 retrace at 6502 that was the preferred target I mentioned in the update I sent out last night, but that the structure off yesterday's high looked like a possible 5 down. Therefore, it at least needed to be considered that the pre-market low only finished wave (a) of b, with the circle b-wave could turn into a wider flat.
Price cooperated by continuing higher following the open, retracing almost all of the overnight drop and coming close to retesting yesterday's high but for now still trading below there.
At this point, if price is still going to fill out a wider flat for wave b of B, then it should remain below the high struck this morning. As long as that is the case, wave (c) of b can head back toward ~6500 again. Otherwise, a break above the morning high and especially a sustained break above yesterday's high would favor wave c of B already under way with ~6800 as the expected target above.
