Market broke down from green support, spiked in to HPTZ(C2) and bounced back to the previous purple s/r beside HPTZ(C1).
Retest of green s/r would be normal market movement; a break up through this could see a move back to D1; pattern allows for a lift all the way back to D2 and still be intact. Breaking above D2 would indicate a new wave is likely occurring that is now just starting to bottom from C2.
There is still potential for further drop, and we could expect resistance to come at any of the significant s/r’s. A large expanding wedge pattern can be seen and this allows for another rollover and drop to C4.
The purple s/r that runs through C3 is significant support and we will be watching it for market reaction (ie. support, consolidation, reversal) if we see another move down.
