The count seems to have completed with yesterday's high and we might be seeing the beginning of a correction for the entire structure from 1810 to 2055. Assuming there will be no further highs, a pullback to test the 50 DMA currently at 1939 would be reasonable. However, if the 200 DMA at 2017 holds the correction then we should see higher highs in the short term. I might go short with a stop at 2055 on the bounce but still need to see how the counter-rally evolves.
For an more elaborate analysis of the current wave please visit http://www.ewaveanalytics.com The current rally in equities and oil was called almost perfectly over a month ago on that site.
Short Term Trend = Bullish
Medium Term Trend = Bullish
Long Term Trend = Bearish trend being challenged
* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.
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