Well, Fridays before a long weekend are usually bullish, but it didn't seem to keep the sellers off the sidelines this time around. While the bears did push price below 1095, the price action (at this point) did not appear impulsive, so I'm marking it as another x-wave.
Should Friday's low hold, here is what I have
- our 2 x waves have a relationship of 1:.786
- our y and w waves have a relationship of y=w*.786
- using those relationships we have a price target of 1114/1115 with z=y*.786. It is interesting to note that this would also close the gap.
- After 8 days of selling, tomorrow marks the 5th day of buying giving us a nice fib ratio for the round trip cycle: 13 days (8/5) should tomorrow mark the top.
- We have yet to really see intense consistent selling since the flash low (when the hourly RSI(5) hit 2.96). We would expect a 3rd wave to beat this level on the hourly chart.
Should Friday's low not hold, then 1078 should hold if we are in a double zigzag. Should 1078 not hold, then we probably already started the next move down.
Should price some how make its way above 1181, then that would turn the chart bullish.
Let the market lead the way...
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