One more way to look at the price action is as an ending diagonal. Orange “C” should be a 5-wave move, and any will do, including a diagonal. It’s visible on futures, too, but clearer in the cash session, so I will post a screenshot of $SPY to demonstrate it here. These may “underthrow,” but they don’t always.
And also, if it doesn’t fall straight to red 5 now, it may do this as well:
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Then we commence a rally?
That’s the thought, yes.