Wave c of B confirmed, another subdivision higher expected

Futures surged higher yesterday evening, breaking out above last week's high to confirm that wave c of B is indeed underway off of Thursday's low. Based on that expectation, price should be finishing wave (iii) of c, so another (iv)-(v) is expected before wave c of B completes.

If the pre-market high struck this morning completed wave (iii) of c, then so far we do not have a deep enough pullback or long enough consolidation that looks like wave (iv) of c convincingly complete already. Therefore, if price were to make a direct higher high compared to the pre-market high from here, it could easily be further extension in wave (iii) with another (iv)-(v) still to follow.

Otherwise, a more sizable wave (iv) pullback is preferred to at least come close to testing the .382 retrace at 6741 as the ideal target for wave (iv). If price is going to hold a shallow wave (iv) and only test the .236 retrace, then it should at least spend more time consolidating sideways as a triangle.

Overall, it continues to look like the .764 retrace at 6913.50 is a reasonable expectation currently for price to reach before all of wave c of B completes.