Today we got a 4th wave consolidation as expected. After hitting a high of 1984ES overnight from the previous morning’s low of 1920.75, we retraced towards 1965. From there, we proceeded with some coiling for the 5th wave up. Where this 5th wave will end is the question — will it end abruptly and reverse or will it continue up towards new highs?
The prior high of pink wave a of 1965/1966 served as support today for the 4th wave consolidation. We coiled up and rallied into the close making a slightly higher high of 1984.75 –which technically could be considered complete, but I think there should be a little bit more room. Any longs should be cautious in terms of size as there’s no guarantee we complete the wave pattern as we expect. We can get anywhere from a truncation to an extension.
If it’s not a 3rd wave up, then the low at 1966 could be A-wave of wave 4 — the high would be B-wave — and then we could retest 1966 again tomorrow to complete 4. So it’s technically possible we retest the lows first if 1884 does not break overnight.