There was a completed 5 wave impulse wave up on February 25th, with divergence present on the Daily chart and AO.  The market then quickly starts into the Wave A of the Wave 4 correction. There was a Wiseman Bearish divergent signal present for an exit of the impulse move up and/or for an entry into the corrective wave of A down.

Currently we are still in the C Wave down of the Wave 4 correction. We have taken out the last low of C on June 18th and it appears we are in the 5th wave down of the C Wave. We are watching the AO peak to see if the divergence stays or if the peak grows taller than the peak of June 23rd. If the price goes lower and the peak of the PROFITUNITY AO is taller than we can expect a much larger move down to complete the C Wave.

We have almost reached the .618 level of retracement on this daily chart of the correction of the impulse wave.  

On the 240 chart we can count the 5 waves of 3 of C down with divergence and are seeing an extended 5th wave at this point. The Wave 5 of 3 is still in progress. We will check back next week to see where we are in the wave structure.

I expect to see new lows in this current move down, it may be quick as we have reached the extreme level of retracement for a correction.

If you have questions about angulation please contact our office or send us an email traders@profitunity.com

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