Tuesday’s trade gave us the reversal needed to put the completion point for the Intermediate wave 4 correction at yesterday’s low at 4224. I have adjusted the count to reflect the completion point for wave 4. Intermediate wave 5 then has launched nicely and I have added initial labelling showing that it appears that Minor waves 1 and 2 of Intermediate wave 5 are complete with Minor wave 3 underway and also subdividing. Within Minor wave 3 of Intermediate 5 it appears that sub waves 1 and 2 are complete. If this is the case expectations for tomorrow would be for wave 3 of 3 taking hold and pushing prices up towards 4355 to 4365. However, having said that I need to keep the possibility of that the rally off of the 4224 low is forming only Minor wave 1 of Intermediate 5 and if this is the case the labelling would reflect sub waves 1-4 being complete and a small 5th wave up to complete the move would likely meet resistance at 4340 to 4351 before Minor wave 2 of Intermediate wave 5 takes over. Ultimately if Intermediate wave 5 is underway expectations would remain for new highs above 4500 very likely.
July 20, 2021