5 min: There is an a-b-c (blue) up which looks like an "a" , followed by and a-b-c (red) down that looks like a "b", followed by a i-ii-iii-iv (blue) of a 5-wave structure up. We experienced overbought conditions at the top of iii blue, which is consistent with a 3rd wave and followed by a trickle-down wave iv-blue along with a negative MACD histogram. A v-blue up is still pending, likely piercing through the recent iii blue top.
1Hour + 2 Hour: Following oversold conditions, as predicted previously, we entered into a bounce up, which compliments the observations on the 5min chart. The descent from the recent all time hight appears a 5-wave structure "a" down, which implies a bounce up "b" followed by another 5-wave structure down "c".
Daily: Friday closed above the 50 EMA signaling that wave "a" down is complete and that we are likely in "b".
Weekly: The market pierced below the Sep 15 low, but retracted and closed higher, labeled as "a" red down.
Interpretation: We may have a little higher to go, before we resume our movement further down.
Next: We want to see the bounce up "b" complete and then we want to see a 5-wave structure unfold down.
Alternatively, if the market, following the current i-ii-iii-iv and to come v (blue) up, followed by a retraction and followed yet by another advancement in the form of 1-2-3, then the market will be moving further up. Too early to make a safe call.
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