If my count is correct (without sounding to cocky it has been spot on until now) we should soon find the end of wave I down from the top at 1,219.80. The ideal target is near the 1,030 area, from where a correction to at least 1,103 should be seen.
What make me believe that we is close to the end of wave I down and not the much more bearish alternative wave count shown in red. On the daily chart we now have a small divergence on the RSI, which would be expected at this point, showing us that the move down from 1,219.80 is becoming exhausted. If however prices collapse clearly below the 1,030 area and the RSI breaks below the low from May 6. I would switch to the much more bearish alternative (seen in red).
The break below the May 6 bottom has destroyed hope for many that this was only a correction and the mood has become much more bearish for the longer term - They (the bulls) just don't know it yet...
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