A 1459.40 target identified here earlier might not be the worst of it, at least for this bear cycle, since it is tied to a one-off point A. Using the highest ‘A’ on the chart, 1925.10, yields a somewhat lower target at 1424.80. The pattern, as you can see for yourself, is too clear and compelling to produce a ‘D’ target that does not provide a tradable bounce. However, as is our practice, we’ll wait and see what happens at the support before we infer that even lower prices are likely. And, as always, we’ll remain open to the possibility of a bullish turn from somewhere above the projected low. The first place a meaningful reversal might be signaled is via the creation of a bullish impulse leg on the hourly chart. Let’s raise the bar a bit, though, and use the 240-minute chart to be sure. In that time frame, it would take a rally to 1681.80 to give bulls a fighting chance.
