Final Push Lower?
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Today we continued to push lower, breaking the March 8th low and inching us closer to completing the larger Ending Diagonal that we have been tracking to the downside for several weeks. While we did break the March 8th low, which technically fulfills the minimum requirements for a completed Ending Diagonal, the micro structure still looks incomplete to the downside. Furthermore, the Nasdaq and the Russell 2000 have yet to break that March 8th low, all of which is still suggestive that we have lower to go before an ultimate bottom is struck.
Drilling down to the ES chart, I am counting us still in wave (iii) of 5 of the larger wave C of (A). As long as the ES holds under the 6683 level, then the near-term pressure will remain down, and we should be targeting the 6551–6450 region to complete wave (v) of C of 5 of this larger wave (A). Once the ED completes, the reversal higher should be quite sharp to the upside, but as noted, we still likely have some work to the downside before we can look toward that move higher.
