I am anticipating that the structures discussed here will break down. Both the triangle and parallel rails. However, there is a short-term scenario that I cannot rule out if we have one more leg in this rally, and it would look like this.
I am interpreting the advance off the 6/17 low as 3-waves complete. However, since it is 3 waves, it may also only be the first wave of a larger 3-wave advance. I will incline that way if we take out the highs (green arrows) of the triangle we are in:
It would mean that the 3-wave advance off the 6/17 low is just “A” of a larger 3-wave move that will probably retest (and then reject) 4000, like this:
I don’t think this will happen, but it could. I hope they do not pin us here within this triangle we’re in now into the close, giving us no real clue as to what comes next week. But, I wanted to share this idea, just in case: if we do rally, it should not last more than a few days.
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