We were looking for that final dip into wave '5' of 'iii' and today it seems we have it in place.
Cable is now down 550pips off the wave (ii) high.
And I think the time is coming for a corrective recovery in wave 'iv'
which should stem the losses for a week or so
as the price ranges in a corrective pattern before falling in wave 'v' to complete wave (iii).
On the 4hr chart,
the ideal target for wave (iii) lies at 1.2520 where wave (iii) reaches 162% of wave (i).
I would like to see a break of support at 1.2475 at wave [b].
We will have to wait and see on that front.
Watch for wave 'iii' to find a low and wave 'iv' to begin.
The initial target for wave 'iv' lies at 1.2816.
U.S CRUDE OIL
Crude is again leading the way down for the market as happened last year.
This is another reason that I am sticking with the bearish count for the stock market at the moment.
the wave count called for a drop in a third wave to get wave (i) underway.
And we were not disappointed.
Wave 'iii' has carried the price back towards initial support at wave (b).
And wave 'iii' is not yet complete.
A break of that wave (b) support at 60.77
should be enough to confirm the larger bearish outlook for a decline into wave [iii].
Watch for wave (i) to continue to develop lower.
Wave 'iv' of (i) should not break above the wave 'i' low at 62.55.
And wave 'v' is expected to break support at 60.04.