I’ve pointed out strange levels before, out an abundance of caution so that we can be prepared for strange outcomes, but I haven’t posted absurdities to the upside, so I will take a moment to do that, just in case. On my primary counts, I have been looking for primary (pink) 3 to come upon us soon, largely because we’re near the top of a channel we have been in for quite some time.
However, it is important to note that the actual channel we will need to use to identify the low for primary (pink) 4 is unknown to us at this time, as what we need are the highs for primary (pink) 1 and 3, and the low from their associated 2. We only know two of those three points. Under normal conditions, we would like to see a fib relationship between the lengths of 1 (March 2020 low to August 2020 high) and 3 (October 2020 low to wherever this turns).
And we don’t actually really have that here. Here are the 3 fib extensions most commonly associated with “threes,” the most common of which is the 1.618, but if we’re doing that, then I would have to believe the recent correction we had in September/October just behind us was a 1-2, not a 3-4. So, let’s keep these in mind, just so we know they exist.
The strength of this rally may take a while to peter out, who knows.
I am looking at a potential channel strike coming up, but a lot of people are watching this structure and so perhaps we hop the channel and hit one of those lower fibs first before retracing, crushing the life out of early birds first.
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