The extremely volatile week for the markets is very typical of an intermediate wave (iv), but also could signal the end of one leg and the first two legs of the reversal. The Renko chart above illustrates my two favorite counts for this nascent bear market: i) that primary wave [A] is still unfolding and has traced out four of its five intermediate waves – (1)-(4) red, or ii) it has already completed an abc correction, which will receive a (w) label, and now the markets are ready to rally in wave (x) before tracing out at least one more corrective pattern.
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