After correctly predicting $XLF’s move to $39 over the summer here, I believe it has completed a first wave of a new 5-wave structure.
The question at hand is: is the green 2 in or not? The expected depth is to the lower orange box where I have minor (green) 2 placed. If that is where it needs to go, we may expect a short rally to the orange box just above us, then a second leg down.
However, if green 2 is already in, it may begin its rise to green 3 now. To be on the conservative side, my prediction will be lower first before higher.