Paths Clearing Up?

With today’s drop to lower lows during this pullback, I think the market is taking the ending diagonal path to complete the c-wave of the (y) wave in a bigger b-wave pullback. Yes, I know, this structure has gotten quite complex.

But, even within this complex structure, the ideal path suggests one more low to the 7632-7643ES region. Let me explain.

If this is indeed an ending diagonal for the c-wave of the (y) wave, today we bottomed at the 1.236 extension of waves i-ii in that structure, which is typical for wave iii in a diagonal. And, as long as this bounce remains below the wave ii high, then the ideal target for the wave v within a diagonal is the 1.618-1.764 extensions of waves i-ii, which is the 7632-7643ES region. So, I am sending this update out a bit earlier so you can all have the appropriate parameters to be watching into the end of the day.

Of course, when dealing with complex structures such as this, the market can always choose another path. But, for now, this is seemingly the most likely path being laid out by the current price structure.

Once a bottom is in place, we will be seeking a relatively clear 5-wave Fibonacci Pinball structure for wave 1 of the c-wave of wave (v) to higher highs.

So, unless we see a clear 5-wave rally off a low, I am going to assume this ending diagonal is going to fill out with a lower low before we see evidence of the next rally.