Wave 3 Already?The selloff at the end of the day is exactly what was needed to maintain the projected top of Minor wave A. However, it is possible Minute waves 1 and 2 have now completed. This means Minute wave 3 could take the market up above 4515 tomorrow before cooling off into Minute wave 4. Minor wave A and Minute wave 5 end points have been updated based on the close and are a little higher than the initial projections assuming Minute wave 3 is tomorrow and sees the index climb above 4510-4520.
The other major update is the final endpoint for Intermediate wave 2 up appears to fall no later than the end of trading hours on Tuesday. We will see how the trade goes tomorrow and possibly issue an updated forecast tomorrow night. The likely Minute wave 3 movement extension levels are on the left and should be finished tomorrow. The retracement levels for Intermediate wave 2 are on the right. Light blue levels are based on most specific historical waves to the wave being studied. Yellow levels are slightly less specific historical data, and white levels are based on the broadest data.
This should be the trade assuming the CPI report is viewed as a positive report (even though the data is almost old news at this point and not accounting for the recent significant rise in fuel prices).
