Today shortly after the FOMC statement, the market nearly reached a new all-time high. This is the expectation of the option in color, but the next best option that calls for a 5-wave advance higher since (A) has weakened (find out how it is determined that these are the two best counts since 2011 here). This is because there is now a low chance of an impulse higher since (A) underway. The momentum of A of (B) is so strong and the ensuing retracement so shallow that strength picking up, as is very typical for 3rd waves of impulse waves higher, is questionable. An ending diagonal is more likely since (A), but this is not a common pattern.
Continue reading at http://ewaveanalytics.com.
blog comments powered by Disqus