Another deep Wave 2 Correction

E-Mini YM Futues

We are still counting that our Wave (ii) correction ended at the Fireline on Monday night. Yesterday morning pre-market it appears that we finished a wave i impulse and the began a wave ii correction for the remainder of the day. The deep retracement we have had since then has helped to clear the count up so now it appears that the structure of wave ii looks like a deep zig zag. At the present it appears that we have more to go.

As our chart shows there are some good target areas with a cluster of some significant measured fib targets. There is a Dyna Range target, a FibGrid mogul, the  fib retracement level of 78.6% and a fib extension target where the c wave equals 127% of wave aright at this same price of 10,150. In addition , counting out the waves of the expected 5ive wave inpulse of [c] of c it looks like it has completed 3 waves and is now in the 4th wave. Also, looking at the 4 hour chart the 55 SMA is presently in this same target range.

Our expectations for the day are that the YM’s coninue toward the target, the Dow should open higher from the pull of the futures market early on and from there we would expect a sharp reversal with the start of the iii of (iii). If our analysis is correct we should end up on the minus side of the market today, below the coveted 10,000 DJI level.

Good luck and Good Trading.