As suggested in yesterday's update, an impulse wave [5] of iii lower likely completed today. Following this, prices reversed in a sharp fashion. This move should be zigzag family wave iv, as expected in yesterday's update.
Today's bounce moved somewhat higher than the wave i-iii, ii channel line (not shown) and stopped nearly at the peak wave [4] of iv. Wave iv also alternates beautifully with wave ii. These are textbook features of an unfolding impulse wave. In addition, today's move stopped almost exactly at the top of the channel shown above connecting key points (ii), ii, iii, and [3] of iii. There is good reason to believe wave (iii) is still completing, but of course the key is reversal tomorrow to confirm the suspicion that wave v is underway or wave iv is nearly complete.
Prices are riding along the lower Bollinger band. Eventually the mid-line will be tested, perhaps by wave (iv).
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