Well Qui, we have only 2 possibilities here on EA. The overnight rally did indeed take us to the 88.6 fib with a strong rejection. The move up only counts as 3 waves so it still looks like Wave B. That could be the catalyst for the Wave C down draft.
Or, a better scenario, would be for EA to eek out one last slightly higher high as AU bottoms in that 88.50 range, and then reverse violently in a much bigger sell off that would accompany a larger EU sell off.
If we get the higher high, I'm going to be lowering my EA target substantially. If not, I'll stick with the 1.46 original target based on the wedge pattern. For now, I'm still sticking with the idea of an ABC correction on EA that will lead to higher daily highs later after this correction is overwith. Basically, that would mean we've hit a big Wave 3 top with a Wave 4 ABC counter trend sell off that would give AU a nice Wave 4 pop and then a final drop.
