I already discussed the possibility of forming a Bearish Island after 4! gaps in the wave up. Today’s closure provided enough confidence that a Gap Down can complete the Island tomorrow. If this is the case, I would become very bearish for foreseeable future.
- Minimum retrace
– 0.786 of wave A – 12740
- Highest probability
– 1.000 – 1.272 of wave A – 11900-12400
- Possible, but less probable at this point
– 1.618 – 2.618 of wave A – 9700-11300
The most critical for the next week or two would be the action around the DT Neck line. If broken through, the third option would become very probable.
The initial forecast on March 20: