Trend = bearish
PHASE 3
Break-out or reversal zone- The index touched the 0.618 fib level and the first structure, so the fib was activated last week.
- This week the index tapped the -0.27 level (fib completion) and we had a sweep of liquidity/new action below the prior swing low. Indicating that we might expect some bullish reaction.
- As the prior fib is completed, we have two possibilities : either we take a new fib from the new low and the new high and we see a slight pullback until the prior lows which aligns with the 0.618. But as the price closes above the weekly low, we could still see an ABC correction, where the index just printed the B and could reverse the C. Still remaining in that bearish leg down.