The first part of the sell-off to complete wave-E occurred yesterday and has already been corrected via a sharp retracement. From a pattern perspective this retracement tested the recent bear wedge breakdown. Now 99.02 and 98.54 are key downside pivots.
S/t, wave-E down is unfolding as an a-b-c decline and with wave-a complete we can project a wave-c target via a 1.618 extension to 97.40. That, along with our triangle/trendline target of 97.08 makes for a larger target zone in the low 97’s. A small H&S top on the very s/t charts indicates a move to 99.20 for today.
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Nomura