My daily count seems to be holding up well and I think we are ready to drop. Momentum so far hasn't been strong, but I am still confident that we are heading lower, and have just taken another short position based on this count. As you can see, the move I have labeled and red wave 2 is a flat, and retraced less than 50% of the preceding wave 1. This signifies weakness, which has also been shown through the minimal retracements in the last few weeks when other risky markets bounced much harder. I am moving my stop loss on my previous short to 1064 because if this is a 3rd of a 3rd of a 3rd we should start to gain momentum very soon and since this wave is expected to extend a long way, it is unlikely we will retrace much from here. If we do push back up above 1064 I will have to review my count.
Lack of volume increase in last leg down concerns me and makes me doubt your count and think this may be wave b of an irregular 2nd wave expanded flat. Would expect a third of third move to be on higher volume and for panic in the streets.
ReplyDeleteTuffmug