The big question is whether we are in Minor 1 or Minor 3. The former means bears should take some profit under 1040 and the latter would call for aggressive shorting. I’ll be watching the squiggles. If the primary count of a leading diagonal for Minor 1 is correct, we should expect (c) of [v] of 1 to form a nice 5-wave move ending somewhere under 1040. If this is [iii] of 3, I think it will look more like a series of 1′s and 2′s followed by some free-falling… so the squiggles should help us. As a trader, you have to be very conscious of a potential 3rd of a 3rd of a 3rd wave. They are too rare to miss!
