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Stocks ended flat today after a brief selloff below fridays low.
It is now a 50/50 toss up between the operating wave count
If the price drops below support at 21465, it will favor the alternate.
The market is displaying a worrying height of bullishness towards the EURO.
If we look at the COT data,
Non commercial traders are now the most bullish on the EURO since may 2011.
I have switched to the alternate wave count, Which I have spoken about many times.
The new wave count views the whole correction in wave [B] black as a triple combination flat correction.
GOLD reached resistance at 1244 again today.
And so far the price declined off that level.
I have shown two possibilities for wave ‘4’ pink.
Last nights wave count called for a decline in wave ‘c’
With the initial target set at 21436.
The DOW tumbled 200 points today and reached a low of 21465.
I would like to see wave ‘3’ pink develop further and break immediate resistance at 1235 before completing.
Todays action in EURUSD has again thrown doubt on the very short term wave count.
The price has risen back up towards the resistance at the high
I have labelled the short term action as an impulse wave lower in wave ‘i’ pink,
And an expanded flat correction higher in wave ‘ii’ pink.
Watch for the trend channel to hold,
And an impulsive push up towards 1236 to occur in wave ‘5’ pink.
A break of 1213.52 will put a hold on the current wave count.
The price will have to drop again and contract in a tighter range in waves ‘c’ ‘d’ and ‘e’.
If the price drops again tomorrow in a three wave form off todays high,
Cable pushed lower today as the short term wave count suggested
The price has so far failed to break the lower trendline, but it is close.