I went over the charts several times, and this is what I have:
- the looks of an ED shaping up; however, an ED should not be forming at this stage if this is a standard impulsive pattern. So, that leaves me with an ED in the C leg of the move or another 1-2, 1-2, 1-2 price pattern showing up with a big breakout coming.
- the hourly chart is showing that we could be in wave 5 with a move below the 34 SMA (currently at 1179) confirming its end. Will it be another subdivision or will we finally start another leg down that could be more meaningful?
- the 10 day ATR has once again fallen to sleep showing us the continued contraction in volatility (signs of some kind of market top)
But until price confirms an hourly reversal (one complete hourly bar that starts and ends below 1182 and a daily reversal (one complete day below 1182), it is just another day in the office for the bulls.
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