Near-term downside still possible
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The market started off initially lower this morning, holding below yesterday's high but otherwise not providing us with anything clearly impulsive to the downside. However, following today's low we only saw another 3 wave bounce which once again was unable to exceed yesterday's high and has since reversed strongly back down again.
Therefore, the larger wave iv flat in blue is very much alive still, although wave C of iv looks to be limited to an ending diagonal structure based on the action down from yesterday's high so far. The fib targets for blue wave (3) of the ED are a bit beyond normal expectations within a diagonal structure though, so I've also added a possible triangle for wave iv to consider as well (shown in red).
Either way, pressure appears to be down as long as price is below today's high, targeting back near yesterday's low next.
