Update 5:36PM: The dollar has fallen back toward the pink circle that was suggested a few weeks ago. Sentiment has corrected from a high of above 80% back to just a hair under 50%. Perfect setup for a big push upwards.
ORIGINAL POST
We've hashed out the sentiment, technicals and wave pattern. Now lets see what happens over the next 2 more days. We have a setup for a third wave down. Even if this is just a correction, we can expect at least an a-b-c "three"
Overall count using the Wilshire5000:
I am well aware of the fact that this giant wedge count could wind up looking ridiculous if this is not a true wedge. I admit its not a perfect count by all means. However technically, the wedge count does fit. We have lessening momentum with each leg up in wave (C). We have lessening volume.
All I can say is that it feels right and makes sense. Now all we can do is to see if prices are indeed exhausted. If they are, then a big price collapse is coming. Thats the fact of ending diagonal wedges. We don't make the rules on these things, the market does.
GDOW looks ripe for a decline:
