Thursday did drop to the 1520s as expected, spent three hours sitting on the support. The final 90 minutes it all fell apart busting the monthly up cycle projected low at 1519. Another event occurred Thursday that only happens if a wave three sell off is in progress. The daily 1.618 support level at 1516 was easily busted. You may only see a daily 1.618 level easily busted once every 10 years or so, today we saw one. The pattern can also be just a normal wave A down, B up and C is in progress because a C mimics a (3) wave in the early stages like we are at now. After we see how Friday trades a better read can be had. IF it is a wave (3) daily LONG 1516 will not be traded above until the “iii” wave is completed near 1476. Therefore monitor daily LONG Friday for clues.If a wave (3) to 1412 is underway then daily down test at 1496 will be traded below Friday.
Notice price is solidly below the lower band on the 60 minute chart? Notice the upper and lower bands are expanding? No bottom can form until they stop expanding and a full 60 minute bar trades above the lower band.
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