Technical summary:
As we have said before, wave (v) 2 is well advanced and could create bottom at 126.87, which is a bit prematurely as the ideal target was the 38.2% corrective target of the rally from 94.10 to 145.69. As long as resistance at 131.74 protects the upside, we could see one more decline closer to 125.98. A break above 131.74 is likely to indicate that the bottom for wave 2 is in place and wave 3 to above 149.55 is developing.
Trading recommendation:
We are going to stay neutral for now, awaiting the picture to clear.
