The price-action since yesterday has been very much as I expected. Once we broke below 125.21 there was no looking back and we saw a quick decent to support at 123.79. After a small consolidation in the 123.80 - 124.39 area we have seen the next move lower, which I believe will find good support at 123.00 of a correction back towards 124.39. Resistance at 124.39 will ideally protect the upside for the next decline lower towards 122.70. My long term target for the ongoing wave 4 is at minimum 120.71 and more likely 117.24. At 117.24 wave 4 will have corrected 38.2% of wave 3 and at the same time this marks the bottom of wave four of one lessor degree. Two very common targets for wave 4.
We have seen the expected decline back to the channel support-line near 1.5700 and we should expect support in this area to be much stronger. I do not see any evidence of a bottom yet, but I will look for a bottom to form in the 1.5650 - 1.5700 area for a break above resistance at 1.5803, which will be the first indication, that a bottom is in place. That said, we will have to accept that this decline could go even lower towards 1.5540 before the bottom is in place. Remember we are in a very complex correction since the 1.5902 high back in early September.
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