With the break above my invalidation point at 125.89, I have to conclude that wave 4 did indeed terminate at 118.73, short of the ideal target at 117.28. So my focus will again be towards the upside as wave 5 develops. The first target for wave 5 is at 131.39, where wave 5 will have traveled 38.2% of the distance from the bottom of wave 1 to the top of wave 3. That said, I do think that eight the 50% or even the 61.8% targets at 135.36 and 139.32 will more likely be seen. For the short term we should be looking for wave ii of 5, which should be our entry for the next powerful rally higher. Before we see wave ii of 5 begin we will likely see one last minor rally higher towards 126.75, from where wave ii down to at least 123.80 should be expected.
Resistance near 1.5880 rejected the test once again yesterday and I'm still looking for a break below 1.5718 to confirm a test of the triangle support-line at 1.5600, once the triangle support at 1.5600 breaks we are looking for the final thrust towards the downside in the major expanding triangle, which has been developing since early September 2012. The ideal downside target for this last decline is near 1.5200, but we must accept the possibility that a break below 1.5390 will be enough to fulfil all requirements for the expanding triangle. Short term we should expect to see minor resistance at 1.5801 will protect the upside for a break below 1.5752 for the next move lower towards important support at 1.5718.
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