Our preferred count shows that wave 2 completed with the test of 126.54 - just above the ideal target at 126.31. We have see a minor rally to a high of 130.70. That said, we must also stress, that the rally from 126.54 is less than impressive.
If we are correct that a long-term low is in place at 126.54, then a new minor low should be seen near the current level at 127.85 for a new impulsive rally above 130.70 towards at least 135.94.
If a break below 126.54 is seen, we know that wave 2 can not be complete and should expect more downside pressure towards 125.06.
R3: 130.70
R2: 129.30
R1: 128.30
Pivot: 127.85
S1: 127.37
S2: 126.54
S3: 126.00
Trading recommendation:
We are looking for a buying opportunity upon a break above 130.70.
