DJIA ~ indices capture Fibonacci price objective but still can't bounce....


After Monday morning's gap down open the market went sideways and then fell to a slight new low on Wednesday. The best way to count this price action is that it was all part of wave (iv) of [III]. We've labeled the formation as w-x-y with wave-y forming a "running triangle." 

The push to a new low as wave (v) of [III] brought the S&P price right to the area where [III] is 1.618 x [i].

Yesterday and today the market could only muster a small bounce to the center channel line before turning down into the close to make a new low for the week.

The chart above is labeled showing the small rally could be wave (a) of [iv]. The new low today would be an irregular wave (b) of [iv] and we would see a bigger rally next week as (c) to complete the wave [iv] correction.

Much lower prices on Monday and we would have to conclude that wave [iv] is going to be very small and is complete at today's high. Wave [v] down would already be underway with targets down to the "minor" wave 4 low made in early 2016.

On Monday the exchanges will be closed with no pit trading...all trades will be done electronically.
This is what probably put pressure on price late in the day along with the fact that Coronavirus continues to worsen by the hour.

Follow the Trend
and
"Trade Safe"

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