The bearish downward trending channel in dark grey has been respected throughout this correction. The top of the channel has been a hard resistance for the upward move. When looking at the 1 hr and 4 hr charts a wave pattern is seen that appears to be the WXYXZ formation. Each wave is made up of complex 3 or 5 wave moves. The WXY AND X waves are now complete.
Bearish:If this begins to move back down into the channel we are probably looking at a 3 or 5 wave move downward that will extend to the bottom of the channel or to the purple trend line (that is formed off of bottoms extending back 3-4 yrs). That will resist the 9000 or lower range.
Bullish: if this breaks out of the down trending channel and extends upward we are breaking the WXYXZ corrective. Instead it becomes an ABC corrective with a new bull impulse . The X Leg actually becomes waves 1,2, and 3 of the new bull impulse.
More probable to see correction in channel. Waiting to see reaction at top of channel.
Bearish:If this begins to move back down into the channel we are probably looking at a 3 or 5 wave move downward that will extend to the bottom of the channel or to the purple trend line (that is formed off of bottoms extending back 3-4 yrs). That will resist the 9000 or lower range.
Bullish: if this breaks out of the down trending channel and extends upward we are breaking the WXYXZ corrective. Instead it becomes an ABC corrective with a new bull impulse . The X Leg actually becomes waves 1,2, and 3 of the new bull impulse.
More probable to see correction in channel. Waiting to see reaction at top of channel.