There’s a lot up for grabs still and I have presented many variations that I can see, so I will summarize them here.
1. Preferred: “Low Is In”
If this is the case, we should begin moving up with vigor to the orange box or even much higher. We should be entering a 3rd wave (of some degree). Orange 3 can even be much higher, and we may only be entering “1” of that “3,” but in any case, we should to or above the orange box and not look back.
2. Possible: “Still Very Bullish Soon”
If the thought expressed at the end of this article is our trajectory, then the ending diagonal needs one more low, maybe even a brief “undershoot” of the wedge. So, in this case, we can enter the 3700s but don’t want to see it go any lower before pumping like we haven’t seen in years.
3. Scary: “We Need a Much Bigger Flush”
If the darkest thought expressed here is where we’re headed, a sharp FOMC rally may stall and then fail. This structure (if it’s the right one) looks incomplete without one more rally after the potential one coming now. It may rise to the upper trend line, but may also fall short (as I’ve pictured it). If this is a triangle, and the market needs a huge flush, the target for this is 3340, taking us back to the Pre-COVID high.
I still favor either of the top two, but I am open to the last one, just because the sloppy price action here is not impressing me yet. I have also had some counts fail on individual names. They had produced excellent impulse waves, but then took out those lows, and I’m not sure what to do with them yet. But, that has put me back on alert.