The recent up and down action looks like a classic contracting triangle to me. I flavor more up action to come when it is finally complete. Not sure my lettering is correct. "C" may not be over. We'll see.
@goodguy Just an FYI and a hope to save you some money. Your count is incorrect. Move "A" to the location of your "B" and recount.
goodguy
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@Lawtyrant, Thanks for the comment. You must see the triangle as just part of a larger correction with the index going further down at the end of the triangle. It is a possibility.
I am not quite in agreement with your count. If you count the downmove as A then the whole triangle should be B therefore there should be a C that will take out the A low. I am not an expert though
goodguy
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@Olu, thanks for your comment. It's just that there are 5 waves in the triangle. some label it a,b,c,c,e others 1,2,3,4,5. The tricky thing in a A-B-C correction after the first move down called "A" there can be a 5 wave triangle that forms "B' followed by another drop to "C". In other words a triangle can be a consolidation before a continuation of the trend or part of a correccion. Respond if you want to know what I mean and I will be happy to find an example of both to show you. Just let me know. Thank you for looking at my charts.
goodguy
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@Olu, Also I am not an "expert" either. Just really like charts. For a long time.
Olu
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@goodguy, I am not an expert too. Like you I just love the charts. Lately EW has been featuring profitably in my trading more than my SMA/RSI strategy and your count confused me a bit. Good luck to both of us. I will be following you
goodguy
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@Olu, Best to you too. I have been following you for a while.