The market decided to retest the top one more time. To say it was through. I marked them D and D. For double top or bottom. It happens often in the market. I used to call them -a- and -b-. The reason is the -a- would show either an -12345- pattern or an -abc- and of course the -B- showed an -abc- pattern like today. Choppy, Choppy, Choppy.

We have started the first wave down.

According to principles of EW trendline. The trend line formed off the -1-2- above needs to make contact on the fourth wave. Sometimes it is higher sometimes almost straight across and sometimes lower. So till the market touches the trendline the fourth wave has not been done.

Wave -ii- yellow, was complex and sharp so this wave four must be either simple and flat or complex and flat. 3.382 should be target.

You can not see it on this chart, but most likely 3.382 will not be the end of this impulsive wave. I would be looking for an larger fourth wave, before lower in this first impulsive wave.

charleydan
http://sillywaves.blogspot.com/