Today’s trade gave us enough information to put the end point for wave (b) of the minor wave 4 correction currently in play. After 4 1/2 hours of rally, the market abruptly reversed and dropping quickly and “take no prisoners” speed to announce the start of the anticipated wave (c) decline. Additional Fibonacci extensions are in place to give an idea of the depth wave C should drop to. Wave C will form a 5 wave structure (down) and thus far it appears that wave 1 is complete with a small wave 2 bounce still in progress. If this is the case expectations are for a wave 3 decline to take over and drop prices in a similar fashion seen this afternoon in the ES. Additional Fibonacci levels are included as well.
April 23, 2021