Zooming out with the current snapshot we can see that RUSL behave as expected. However we are not out of the woods yet. We still only have 3 clear waves up and the 3rd wave up stalled after 5 subwaves right at resistance. This opens the possibility that there is more downside as shown.
So at this point the model allows for either a small pullback at the open tomorrow followed by a breakout of that resistance line as shown in green OR a dramatic reversal to lower lows as shown. Nobody can know in advance which it will be because the herd gets to make most of its decisions in real time. Rarely is the wave count so pristine and perfect that it does not allow for real time decisions by the herd. The EW analysts handles this by always knowing that a 3 wave movement can be a 3rd or a C.
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