Jun 17, 2015
Some guys are arguing that the wedge is finished and what we see is impulse lower.... sorry but I can not see an impulse in this overlapping mess. The last two waves lower are three waves structures - two legs lower of the same size with a pause in the middle(the green arrows).Is there a risk to the downside? Yes it is possible that we see one more leg lower. The current wave higher is three wave structure so far too. If we do not see a follow through higher today it is probable that the first zig-zag is part of a a bigger zig-zag. Around 2053 Y=W a=c and we have MA200 on the daily chart around this level, so this should be the target for another leg lower. When the ending diagonal is finished we will see a strong impulse moving lower fast. This is not the case at the moment - even if the prices move lower this is a corrective structure for me... cycles and market breadth are pointing to a bottom too, so even with another move lower I still think we have not saw the top.