trend test tuesday, page-17

Here is one way of seeing EW on XJO.

Of course you could take the Aug low as A and Nov as B etc.

I haven't labelled it but you can see that 3 of 5 of C itself subdivided into 5 waves or 3 down legs which is normal.

The rally now is back to the minor 4th wave top in that leg which again is normal.

So the pattern certainly allows for a final low to complete an orthodox pattern.

If that is to happen then we probably shouldn't go much higher although it would take a move through 5500 to completely invalidate a new low on EW terms.

I am not suggesting new lows but as yet it can't be ruled out.