Need One More Breakdown To Complete Wave 4
With the machinations we experienced today, it truly felt like a 4th wave, and, worse yet, a b-wave in a 4th wave. The market climbed back to the .618 retracement of the a-wave down, and then drop hard and fast, which is usually the indication of the start of a c-wave. At this time, I really do not want to see the market moving higher than the high we had towards the end of today. Rather, we should be heading lower to complete the c-wave of this larger degree wave 4. Amazingly, the Fib targets for a c-wave down now rest between 1726ES-1740ES, depending upon how extended the 3rd wave down in the c-wave takes us.
Alternatively, if the market takes out the 1767ES level overnight, then we will likely be visiting the 1787ES level early next next week to complete the rare expanding ending diagonal I mentioned of late. Again, this is very rare, so it is not my primary expectation. Over 1767, and I have to begin to expect the 1787ES level next.