With the light volume of Columbus day came another doji candle. Tomorrow marks what I am counting as Minor wave 2 being 1.5x the length of minor wave 1. One thing is for certain, if this is a 3rd wave for a bull market, price action is taking its sweet time. We still sit below the dreaded 786 retracement at 1174. We could still be in our final a-b-c of the 5th wave of an ED having finished the 'a' wave today and the 'b' wave tomorrow. The wave structure won't be over until price can get below these key levels:
- 1150 (the micro 4th wave low & the hourly 89 SMA, which has provided support since the 1040 low)
- 1130 (the breakout pivot)
- 1100 (the daily 89 SMA and another key daily pivot)
- 1040 (the last key support - tested 3x)
However, if price can get below the breakout pivot, then odds are VERY high that the rest will follow with the start of Minor wave 3.
Posts
