As it stands, from the 5/2 low, we only have 3 waves up (and not yet 5). That may mean this rally has only been corrective in nature. Note that we found resistance at the COVID trend line in linear scale after the FOMC announcement yesterday.
Now, that said, all of this doesn’t tell me much yet. It doesn’t mean that we’re going to take out the 5/2 low before moving higher, nor does it guarantee that we are going to go higher.
I think that the sentiment here remains far too bearish to support another plunge, and so I expect higher prices, still in the area of the orange boxes above us at the least, but because we haven’t rallied overnight or taken out this trend line, I am on alert for the moment, and remain open to many possibilities from this point. I cannot really make any short-term call here that would be much more than guessing.
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