I recently posted about Adobe here. In that post, I expected a strong decline soon, and while that hasn’t changed, I would like to write an update to account for the recent strength.
In that last post, I interpreted the structure is was lately in as a triangle (the green structure on the right), but the breakout suggests that it is a 3-wave structure for Pink B (instead of the 5-wave triangle). And the symmetry remains remarkable over the entire topping structure as a whole.
Like the breakdown at the end of Pink 4 in the spring of 2021 (the orange box on the left)—which was a shakeout prior to the next markup leading to the top—this structure has broken up (the orange box on the right)—which I believe is a shakeout prior to the next markdown I continue to expect.
Let’s zoom in. Much like the S&P, we will want to see this as a 3-wave advance, some kind of A-B-C, and there should be a relationship within that; and also like the S&P, the 2:1 relationship is just above us, so this could be a good spot for the rally to complete.
