Today I don't have much to add to what I have been discussed in my last 2 posts. I am on a wait and see mode, for clues that may validate or kill the Ending Diagonal project.
So far it looks ok as long as the current wave (III) establishes a top below 1310.44
Then the following pullback; wave (IV) will have to:
- Be corrective.
- Overlap below 1266.73
- Establish the bottom in an area that maintains a converging pattern.
Hence at the moment I maintain it as the preferred scenario.
For the immediate time frame given the fact that the initial structure of yesterday's pullback is corrective, I would not rule out that price is willing to go higher maybe within a Triple ZZ wave (III), therefore, as long as price does not lose the 1285 area and breaches the rising trend line, price could have another push higher.
We have s/t overbought indicators such as Tick at 918 while CPCE is dropping to extreme zone. Both are warning that a s/t top should not be too far off.