On September 16th Crude oil just completed a large second wave corrective rally,
And the wave count was calling for a large move lower into a third wave to begin immediately.
The market dropped impulsively off that high in a very bearish wave formation.
All the signs were pointing to a sharp decline ahead.
Here is the chart I released that night showing the setup.
Waves (i) and (ii) created a bearish lower high at 63.00,
And now it was time for wave (iii) down to begin.
The wave count was calling for a drop in wave [i] to take out most of the recent rally.
Here is what I wrote that night;
If waves '1' and '2' are now done,
then we should now expect wave '3' down to begin to track lower over the coming week.
A break of 50.50 will confirm wave '3' has begun,
and we should see a five wave decline occur in wave [i] over the coming week.
Todays sell off and recovery to a lower high may be waves (i) and (ii).
Watch for wave (iii) to push lower again tomorrow and break 59.00 again.