The pattern is more important than price, and I see the markets are reacting to China, or are they reacting to a potential full war in the Mideast? Either way the drop has been very steep, and even leaving a gap in its wake. My C to D wave, also looks like a perfect zigzag at this time. Technically, I would like to see that potential
zigzag completely retraced. Of course, if my 4th wave is real then this market can roar back with such a vengeance, that it will shock us. It will take many more claw slashes from the bears, before this bull is mortally wounded.
The VIX has also made a gap on its explosive move up and gold reacted as traders exhibit
fear investing. Fear investing never lasts long as even the US dollar has recovered and pushed higher.
I will remind readers that I will always try and draw my trend lines by using 2 or 3 equal parallel lines and will never try and force the trend, by moving the goal posts. I see it as providing more stability and it will be clear cut when the markets escape out of these double or triple lines. In other words I will not knowingly produce throw-over or throw-under the charts.
At any other time my c and d wave would work as a great 1-2 wave, but everything coming before it does not. Even if the markets keep crashing way past my bottom trend line, it can still catch a 4th wave at another location. Only some clear cut impulse waves will extend the decline and then we have to be very aware where we are counting from.