ES-4-4-19-9-57-PM

We have got a flat corrective wave iv down structured as a-b-c.

Moreover at this moment we are witnessing unfolding wave v up. That wave v up has to be subdivided into a up, b down and c up. Normally wave a up retests the high made by the preceding strong rally in wave iii up. This is exactly what we are getting here. Then we should get a pretty shallow corrective wave b down. That wave b down can NOT go under the low we made yesterday (2,871).

Then would come the time for the final rally to a new higher high. At this moment we see a very strong confluence of extensions of different degrees in between 2,902 – 2,906.  That very last rally will finally complete the large rally in wave A up started in December 2018 off the low at 2,322.25. 

Let’s talk where the that large coming pullback in a corrective wave B down may find its bottom. First, every corrective drop that follows a completed five wave fractal always has as teh first target the previous correction in wave ( iv ) down. In this case it’s the low made on 8 March 2019 ( 2,726.50 ).

In addition we should add retracement ratios to the whole rally. 

The first target is 23.6% retracement ( 2,770 ). 

The second normal target is 33.3% retracement ( 2,712 ). I consider this target as the main one.

The third normal target is 41.4% retracement ( 2,662 ).