Last week was another sideways week. Most of the action was on Tuesday, when also a rather large range (26 points). The other 3 days in the holiday shortened week had very little volatility and didn’t move the price much. From an EWT perspective last week was significant though because Tuesday’s low overlapped the 1st high off the lows. Which means this is either a bullish nest going up or we have a rare double 3 which started at the ATH (the famous w-x-y structure or 3-3-3). I favor the double 3 instead of the flat because the B wave off the lows didn’t retrace 90% (which is required for the flat to be in place). That means the bears still have one option to head lower more immediately, but that move lower will only be 3 waves, so likely not go so much lower (compared to a flat).
No real change on the weekly cycles. Directionality is heading lower still, which could be a sign the market needs more downside action in the short term.
The daily cycles seem to add to that conclusion with resistance levels triggered at the 1st of September’s highs. Those levels become important to watch and are likely to be hard for the bulls to get past without a trip lower (and a new support).
The 288 and 480min cycles You need to be authorized or upgrade to see this content. Please go to http://mcm-ct.com/membership-signup-dev-2/ to sign up.