The Bear Room, page-968

Note: The chart below is just an example to explain my thoughts ... for explanatory purposes in the chart below it is assumed that 1) a trend reversal took place at the bottom of the uptrend 2) and the top of Larger Degree Wave 1 was reached ... I repeat this is an example only ... I do not know how this will play out

1) if you look at "smaller degree" wave 5 in isolation, then yes the retrace looks crap from a bull perspective i.e. its has retraced more than 0.854 Fib (2nd pic ...1 hour)
2) however if you zoom out to a higher/larger EW degree e.g. daily (below pic) then Wave 1 of the larger degree consists of 5 smaller waves and small wave 5 is the last/top wave
3) IF this is a wave 1 of the "larger degree" then you should "expect" a retrace in the context of the larger degree Wave 1 between 38-78 FIB is OK ... 50-61 Fib being a sweet spot
4) this means that the daily trend will be making smaller-degree lower-lows to achieve the higher degree retracement ... however it does not mean the uptrend has changed and if this is truly an uptrend then Wave 3 and 5 will easily surpass the top of wave 1

anyways .... my 2c ... maybe there are some EW guru's around that want to chime in