This morning I shared my expectation for upcoming pullback off the support that has been tested numerous times.
That pullback is subwave b up of wave v down.
Such a pullback normally subdivides into a-b-c zig-zag (shown on 30 min chart below).
Note that this bounce has had a clean a-b-c up subdivision.
I would also point to a clean five wave down structure of the preceding decline labelled as subwave a of wave v down.
In any corrective a-b-c structure the final leg up in subwave c normally comes as a strong short covering rally
As you can see, that bounce has almost hit the Red Target box that starts from 41.4% retracement of the preceding decline.
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