NEW INFORMATION REFLECTED IN FORECAST

Over the last three weeks, sellers have been aggressively selling, creating a pretty clear three wave corrective structure with a possible target of 5300 support. Daily RSI is cooling substantially as price nears that zone, indicating a possible change of behavior may be coming. When combined with the weekly divergences, the evidence suggests that we are likely still in a intermediate (yellow) degree wave three and it’s target needs to be pushed higher toward the 6000 zone. This is even more evident when analyzing the lack of divergences on the monthly chart. With all evidence considered, the market is in for some large swings, but still positioned bullish on a higher degree.