Bearish divergence continues today, which supports the expectation of a pullback.
Price moved lower to break below the very close by invalidation point on the hourly chart.
For the short term, downwards movement was expected for Thursday’s session. An inside day completes as a red daily candlestick, mostly meeting expectations but not as clear as hoped for.
A downwards swing was expected to begin the week. This is exactly what has happened.
The first hour of the session saw a break below the channel on the hourly Elliott wave charts. At that stage, downwards movement was expected, and an increase in downwards momentum was also expected. So far price is fulfilling those expectations.
Downwards movement was expected to most likely be a small pullback within an ongoing upwards trend.
The pullback has remained above the invalidation point, as expected. The target is slightly adjusted; the Elliott wave target is now only 2 points from the classic analysis target.
The main Elliott wave count expected upwards movement. This is what has happened to start the new week.
An upwards breakout from a bull flag pattern was expected. This looks like what has happened at the end of Friday’s session.
Price has moved sideways to complete an inside day and close as a doji.
Downwards movement was expected to begin the new trading week. This is not what happened. Upwards movement invalidated the hourly Elliott wave count.