Neowave outlook of market

Structurally, on +ve follow-up to Hammer last week, we did not rule out that Brexit fall may have ended x-wave. We also argued that if that is indeed the case, then “D” is still developing as a Complex Corrective, and 2^nd Corrective could reach new highs for “D” leg.

By NEoWave, Complex Corrective involves x-wave which separates 2 standard Correctives. The only minimum requirement is that the 2^nd Corrective should cross the end-point of the 1^st Corrective.
The labels for x-wave is now finalized at the bottom Brexit fall, and the recovery thereafter is marked as lower-degree “a” leg of the 2^nd Corrective. Note that the Brexit fall considered as the lower-degree c of x-wave.
The “a” leg of 2^nd closed the Brexit gap and also crossed the top of 1^st Corrective, which achieved its minimum requirement discussed above.

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However, note that 5 consecutive Bull candles is a record since 23^rd Jun’15, and 6 consecutive Bull candles with higher high-low would be a record since 27^th Jan’15. 
If the history is any indication, the action is looking more and more overstretched, and the Index could turn wobbly any time soon.


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