As we have continued to bounce over the past few days, my alternate count is now in play. I have marked the most recent low as the end of Minor Wave 1. The old count had Minor wave 1 ending at the crash low, but the recent wave structure has not supported that. We seem to have a clear leading diagonal down from our highs. Wave 2's typically retrace 50 to 61.8% of wave 1. The current 50% mark is around 1130. At this point, I don't know if we will make it that high. We need more waves to form first.
For right now, I have wave [a] of 2 ending at today's high. This means we are now in wave [b], which should retrace some of the up move before going back up. 1075-1080 is the range for now.
Wave [b] could be very quick, so we have to watch for possible reversals back up at any time. Also, on any down move, watch the internals. If the internals are very strong to the downside, it could imply a wave 3 instead.
The daily candle stick is also bearish. We could get some follow through for this shooting star.
The Russell has also broken out of it's wedge. It has retraced 38.2% as well.
We could get back down to the 640 level for wave [b].
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