Price seems to be back-testing the 100% extension of a very flat 'A-B', as suggested yesterday. I closed out my shorts after the 3rd wave down and have been looking to go long into the forecasted bottom from the displaced SMI - see yesterday's post. We now have a forecasted 'top' ahead. I have drawn in the 85.4% fib fans for the waves down in proposed 'C'. Looking for price to at least reach these in the next SMI cycle up or break them to the upside.
The drop from D2 has left price in a void here with D4 below. The SMI clusters however suggest time is up and back up to T4 perhaps - again! I have drawn in a regression channel to the low, so lets see if price breaks the perimeter or continues down.
Price appears to be testing that 1.3133 area in detail and next will have to be the daily pivot. This wave sits on top of the My-Wave in the first chart, so needs to turn over completely to the upside to give new life to the bullish case. Given the possible flat correction, I preferred to close the shorts early and give the longs a chance. We shall see.
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