In my video over the weekend, I said that there was a good chance of us testing that gap fill at 1112 today. We got within 3 points of that by making our low at 1115. I also said that whether Minuette wave (ii) started right off the open, or started after we made our lows for wave v, expect it to be very sharp and powerful to the upside. We had a 20 point reversal on the SPX.
So far, things are going just as expected. I think it is almost ovbious that we are in Minuette wave (ii), and it doesn't look complete yet.
For now, the exact targets are unclear, as we are just in the start of wave (ii). As more waves develop, a more clearer target will be available. But for now, my rough estimates expect a rally to somewhere between 1150 and 1160.
The bearish alternate is that this bounce back this afternoon was all of wave (ii), and tomorrow we start a new downtrend in wave (iii). I doubt that this is the case though.
Even the daily charts had a reversal candle.
I expect a retest of the top of Friday's candle, which is right under 1160.
The USDollar also had a possible reversal candle today. As we know, the USD has been in a very powerful uptrend in the past few months. It has been looking a little extended and overbought.
For now, the range for retracement is between 84.17 and 84.50, as indicated by the yellow box in that chart. I have 2 possible retracement boxes marked there.
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