Monday, July 5, 2010

Minor 3 Continues

Hmm..







Minor 3 likely has more room to run.  If minor 4 terminates in range of 4 lesser degree then we might be sitting in the target zone of a minor four retrace right now.  Watch out for hard 5's.  The flash crash is a recent example of this, but there were other instances of hard 5 waves in the '07-'09 wave.  I do not believe intermediate one will have minor 4-1 overlap and thus am not looking for a large bounce in the short term.  Minor three really needs to go lower in order to give room for a minor 4 retrace.

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