Now, this thing is again, drawn as the "ideal" wave. So the next wave down would be pink (i) of [iii] of 3. Pink Minuette (i) should again, in theory, advance prices lower than 1040. Then probably a brief rebound wave (ii) and then the bottom falls out in a truly "third of a third". It should be a big one down. It would also be where a "blue box" area of virgin wave space that gets left behind.
So this is what the primary count is painting. It leaves no easy entry for a large short position as a lot of folks cannot believe this thing will literally fall off a cliff so the positions are light. It even looks like a falling wedge! This is one reason Bob Prechter recommends the things he does because he knows how hard it is to "get bearish" as a reaction to the market rather than a preparation for the bear waves.
This chart is the primary count and so far, it keeps following it. Until it breaks out of the ever-increasing angle of attack that the market may be in, well...the market has had more than a few bullish reactionary days since the drop off from the 1219 top. Yet each one is getting squashed back down and there has been a lack of follow-through.
The dashed red lower trendline is a potential pointer to Minute [iii].
I'll keep painting them as they unfold until they prove something different. They haven't just yet...
The gap up was breached at the end of day. If this is (i) of [iii] of 3 down, then pink Minuette (i) should probably finish lower than 1040 so that it advances prices under the [i] low.
At the neckline again.