Two 81 tick swings set up this slippery channel for ER2. This a.m. I thought it would touch the bottom of the channel, but S1 turned out to be impermeable. The locals in too much of a hurry to squeeze some shorts, I imagine. From the 1, it was an easy 4-6-8 ramp with prescribed pause at each - not much of a retrace, so a squeeze would be a reasonable guess. As such this entire rally (10 points) is likely to be retraced. The top of the channel proved to be impermeable, as the Dow (YM) had to have its appointment with 10840 (Open POC etc) and dragged others down.
It seems another touch of the bottom of the channel will be reasonable to expect. If the 0-1 leg is repeated (60 ticks already done, 84 to go), we could see 666 and change before a rally which may retrace 2/3 at least of this move down.
Just for entertainment. I really should stick to my pivot points.
PS: The numbered waves have nothing to do with Elliott.