Published 25th February 2019
The bearish sequence from the May 2018 high counts best as 9 waves into the December 2018 low. That’s an impulse and suggests that the downside on the FTSE 100 is incomplete. Hence, the current rebound is most likely a countertrend rally. It either faded a couple of weeks ago after diverging or extends further to the upside. The black count shows an immediate reversal as the FTSE has not confirmed continental Europe, which went into higher recovery highs over the past few days.
The black count has to deliver within the next few trading days. Otherwise, odds shift towards the red count and an extension becomes most likely.
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