Since we have not shown any kind of overnight recovery, and to the contrary, only further weakness, I should look for a place of potential support.
I don’t think we’re in a 3rd wave down (because of the volume spike), and I think it’s more likely that we’re in a “final” leg down of this decline. That said, it can probably extend as much as it needs to. Since the contraction in price from yesterday does not appear to have been an ending diagonal (we would need a huge rally in the next hour, and that looks very unlikely), I will suppose it’s perhaps a 4th wave.
We do have a trend line here (green):
And we might count the decline like this:
Bear in mind, if this is heading into a major bottom, there’s no guarantee that it won’t have a violent reversal. But failing from that wedge like that can also be pretty bearish, and there’s not a lot I can suggest just yet. It’s possible for us to go much lower too.
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