We Can’t neglect the fact that holiday trading volume is taking a place in our market, hence we will update the chart here (link) same 10 minutes setup, HOD on Friday was 103.99 so we have to wait to see if current support at 103.25 holds, if that support holds we should be looking for 105.61 and 105.96 as ideal targets for wave iii off of the lows contrary case we should focus our eyes at the 97.58 area.
That is all what price is telling us at the moment, we have arrived to the end of the month, and PCR for this week was heavy inverted last Monday, December 19th, at 1.568, current value is 2.116. Based on PCR, we should be somewhat optimistic for the week, but price still needs to confirm.
Based on cycles, one more low still could be seen on IWM/TNA/RUT, but risk reward still would favor the long side of the market at least until January 3rd.
Some notes from December 23rd
Based on EW, this decline has been very corrective, this is pullbacks have occurred in three waves, so there is nothing bearish to talk about yet and even our current expectations are that TNA should see lower levels while it does not take 107.54 on the upside, we should expect 97.58 -equivalent to 1% extension- hold and correction finishes there.
We have our macro levels to watch on TNA and the micro we could expect a bounce into today, that should be corrective in nature. Setup is here (link), stop at 101.13 targets for 104.15 and 105.61.
