According to my principal analysis (which of course could be wrong), $PLTR may have more downside ahead. The first leg down can be counted as a leading diagonal in five waves, so this counter-trend bounce should be a B wave (or a 2, it doesn’t really matter at this point—that’s what we get to test on the next step).

Once it finishes a 3-swing move to the box above (it’s still in the first swing), it should move towards the lower target in five waves. If it gets to the box, then it’s more likely a 3rd wave and not a C. If it goes in that direction but falls short of the box, then the correction may be over.

At this point, all I’m looking for at the moment is more up, then more down. It’s the magnitude of the next down that will tell us more.

[UPDATE]: I am cancelling this call. While it has moved in the direction of blue b as I expected, the structure of the move does not conform well with the nature of a B wave. It’s a clear impulse that is much too big (to be the first leg of a three-leg B wave). It is likely the beginning of a new bullish sequence. Since it’s 5 waves, it may now retrace to the lower orange box, and then go significantly higher taking out the prior high and then some.