AA is probably better for this, but I don't see any problems with it - yet. The upward thrust this morning says we are in either an "a" or a 1, because it unfolded as five waves. If it's an A, it is most likely a zig-zag, meaning 5-3-5 up. It also means that the C will probably make further price progress - higher than A. (These are all little waves inside your black "b")
The pattern you have drawn, with the red "B" as a zig-zag, would be violated if the present move up takes out the low from wave 1 down, COMPX 2135. At that point, we'd have three waves down, with no way to make an impulse down. This limits how the remainder of your red "B" can unfold, most likely as a flat, 3-3-5. As the name implies, it isn't as severe a correction, and might not make any further price progress at all beyond this morning's low.
BC |
