Tuesday’s trade gave us the reversal needed to put the completion point for the Minor wave 4 correction at yesterday’s low at 14445. I have adjusted the count to reflect the completion point for wave 4. Minor wave 5 then has launched nicely and I have added initial labelling showing that it appears that waves 1 and 2 of Minor 5 are complete with wave 3 underway and also subdividing. Within wave 3 of Minor 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 14900. However, having said that I need to keep the possibility of that the rally off of the 14445 low is forming only wave 1 of Minor 5 and if this is the case the labelling would reflect waves 1-4 being complete and a small 5th wave up to complete the move would likely meet resistance at 14855 before wave 2 of Minor 5 takes over. Ultimately if Minor wave 5 is underway expectations would remain for new highs above 15000.
July 20, 2021