After a strong move lower Friday, the market rebounded sharply and crossed into Wednesday's territory. At this stage of the decline since 7/22, is likely that the market is winding down its downward move if this move is not already complete. The structure after the sharp rally Friday is generally corrective in nature with the futures rising sharply into its 4:15 EST close, but a gap lower within [v] is still possible. The count has not changed since Thursday's update, but notice the alternate count above.
Prices moved under the 61.8% retracement level shown above, but rebounded sharply higher following this. A wave (2) count is still valid, but the market must move higher soon to keep the count intact.
The market still looks poised for a rally and more recovery highs considering the wave action over the past few months. In my opinion, what seems to be considerable negative sentiment at this time should support the view that there will be a bottom that should stand for weeks or months to come.
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