Evening Update: $96 must hold any retrace tonight and tomorrow

I was not anticipating this retrace to take out the previous low of $94.70. We had previously completed a 5 wave structure, AND PRICE WAS RETRACING IN A CORECTIVE FASHION IN 3 WAVES. Obviously my expectations was a move to the $111 level and then higher. Since price decided to drop much further I have had to re-evaluate my count.

If the previous 5-wave structure was not a wave 1 starting off an impulsive wave...then it can only be an A wave in a larger correction. I have labeled the chart in this manner. That means afterwards we have a B and C wave counter trend. Issue is we do not know if counter to the larger or shorter time frame trend. So here's our parameters.

1) We have 5 waves off the $92 bottom today. We need to hold $96 or the odds increase we take out 92...and most probably test the February lows.

2) If we hold $96 and rally over today's high of $100.89 we should go to the PIVOT POINT of $113 for a larger wave 1. Doing so will result in a new short term trend that ultimately could have us test $143 high pretty soon.

3) If we rally to the danger zone and begin to fall back to $100.89 (Today's high) we will probably be in a C wave down to new lows.

Side Note: I've been writing about how as of lately Solana has been acting tethered to the indices. Today's move in the SP500 breached key support and now it looks poised to test the 4,000 level. That would square more so with Solana rallying to the danger zone only.

I'll update in the morning.


Best to All,

Chris