As the count is right now from the minor high at 1,099.39 is almost impossible to say if we are just correcting or we have begun the next leg lower. If we are headed lower then resistance at 1,092.18 should not be broken to the upside. If we break above 1,092.18 we can safely say, that we have only seen a correction from 1,099.39 and that we shall see a new top above 1,099.39.If however 1,092.18 holds for a break below 1,087.96 we should see downside pressure building calling for a test of important support at 1,070.
Can this be a leading diagonal? It ended at the 1080.53 low of today and the rest is a wave 2 correction.
ReplyDeleteHi Ronny,
ReplyDeleteLeading Diagonals can only occure in wave 1 or A, so if it's a leading diagonal then the decline to 1,080.53 is wave a, the rally to 1,098.36 wave b and then we should see a new decline in wave c.
If's the case it will be some kind of flat correction.