G'day again

This is a follow up on my post from this morning, but in this post I will focus on the recent price action. It's not because the diagonal count failed that we have to start from scratch.

From the January lows an upward zigzag was counted and that structure still stands. This morning I showed you that this zigzag could potentially fit in an upward diagonal count.  Needless to say it can also fit in a bearish count.

So we have to concentrate on the price action since that March high - as you can see above it can potentially be counted as a completed zigzag as of now. But it is too early to be sure, the abc downmove can still become an impulse if current strength is a fourth wave - an overlap of the early April lows (a or i on the picture above) would most likely confirm that we are dealing with a completed zigzag though. And that could mean an upward iii-rd wave could be in progress - if so another zigzag would have to be expected as a diagonal wave for iii making a new high above the April high, and most likely a contracting structure because wave i took a lot of time, so that would mean i>iii>v in price&time. 

So it is certainly possible that yesterdays crash was a bear trap. If we only get a fourth wave here though, that would certainly make me a lot more bearish! 

Sincerely