Yesterday I had said that 1105 was the key pivot to watch for if we had any up move. It seemed to have served as a level of resistance today, as expected. We had trouble breaking this level a few times today. And of course, we closed right on it. Perhaps it may gap up tomorrow, because that seems to be the trend lately. Close on resistance, and gap it up the next day...
For the bearish count to play out, we really cannot break above 1110. If we break 1110, we may still be in Minor Wave 2. If a new downtrend has started, 1107 needs to hold tomorrow, and we need to close below 1100. Here is a chart.
1110 is a must hold for the bears.
Here is an up close view.
As you can see, the wave down was very easy to count, as it should be with impulses. The bounce back up looks like a real pain, as do most corrective waves. Because of the difficult nature of the wave count, I am leaning towards that this bounce is corrective, and not impulsive. Impulse waves are very clear.
If this plays out, the target to complete the triple zigzag is around 1107-1108, but not much higher.
If we do come out and break 1110 and 1112 tomorrow, 1115-1117 and 1120 are the key pivots to watch. On the down side, watch for 1100 and 1095.
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