General overview for 05/12/2014 11:10 CET
There is still one more wave to the upside missing on the lower time frame counts (wave 5) of the overall impulsive cycle labeled as big wave 5. The market looks weak right now and the mushrooming top suggest a corrective cycle in wave 4 is about to kick in. There are two possibilities here:
– main count – wave 4 has been completed and now final stages of the wave 5 are taking place. Might be impulsive, might be Ending Diagonal, but so far LOOKS impulsive. Break below the level of 2047 invalidates the scenario.
– alternate count – wave (a) of a triangle formation wave 4 has been compelled and market is now making zig-zags (5-3-5) inside of a larger corrective structure. Triangle is the anticipated pattern.
2080 – WR2
2075 – Local All Time High
2071 – WR1
2066 – Weekly Pivot
2061 – Wave II Support
2057 – WS1
2051 – WS2
2047 – Key Level
2043 – WS3
It is rather difficult to trade the corrective cycle especially the triangle pattern so it would be better to stay aside. However, if You are eager to trade, it would be better to go with the long term trend and stay on the BUY side.