I have been studying Glenn Needly's (Neowave) time rules yesterday and I need a little more time checking different things out, so this morning you have a "brief" update only.
As can be seen we have a clear five wave rally from 94.10, what we are trying to establish is whether wave 5 is in place already or more upside action is to be seen.
It's clear that wave 3 was the extended wave and that often means that there will be equality between the two other impulsive wave, which in this case is wave 1 and 5. Looking at them wave 5 currently is a little longer that wave 1, but they are close enough to be as equal as one can expect.
If we measure the distance traveled from the bottom of wave 1 to the top of wave 3 we can see that wave 5 is almost 38.2% of that distance, so we have two demands fulfilled for a possible wave 5 top in place.
Nguyen yesterday point out, that wave 5 is to short time wise to fulfill Glenn Needly's time rule, which states that two waves next to each other, the smallest of the waves (time wise) should be at least 1/3 of the longer wave, which in this case means, that wave 5 should take at least 2,66 weeks and it has only taken 2 weeks till now, that means we should see more upside pressure this week, but does we need a new higher high? knowing Needly's work then the answer is no. He more than any other analyst, I know, works with termination points below a top or bottom. That is not to say that we have seen the final high at 131.12, I still think that one more new high would fit my picture better, but the break below 126.03 did confuse the overall picture and if my count is correct, the only possible impulsive move, where that is allowed is in an ending diagonal.
Only made it to 1.5402 yesterday and has already broken above the top at 1.5558, but is wave ii finished? I don't think so. I think an expanded flat correction is building and that means that we should soon see a new downturn towards the ideal target area between 1.5263 - 1.5319. Wave ii will likely terminate closer to 1.5319 than 1.5263, but only time will tell.
Looking at the larger picture it's clear that the possible upside potential is huge and the minimum target for this rally is close to 1.6973, but I still think we will see much higher levels longer term.
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