Has The (b) Wave Bottomed In Metals

The short answer is I have no proof that it has.  Rather, all I have seen is that the charts have risen to their upper resistance levels today.

Remember, we are ideally expecting a big c-wave higher towards the highs of 2015 once this (b) wave bottoms.  And, we know that c-waves are impulsive 5 wave structures.  That is why I have noted time and again that I want to see a full 5 waves completed off the lows to consider an aggressive long trade in this market, especially when we are looking for a set up to lower lows.  I will need a solid pattern in place to counter-trend trade these charts.

For now, we do not have a solid 5 waves up off the lows.  So, I am going to wait for a clear 5 waves up before I am willing to start buying 3 wave pullbacks.  For now, there is nothing in place that has me clearly accepting that this (b) wave has yet completed.  And, I know I am being cautious, but one needs to be cautious if you want to aggressively trade in counter-trend directions.

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Avi Gilburt is founder of ElliottWaveTrader.net.