We mentioned last week that “the advance may well be the first leg in a larger, more complex upward correction but a sizeable decline is expected regardless (probably into parity).”
With support holding at the confluence of the 38.2% of .9647-1.0624 / 3/24 and 4/18 highs, we must respect the possibility that a larger correction is underway from .9647. To this point, both legs (from .9647-1.0624 and 1.0624-1.0216) are in 3 waves. This action has all the earmarks of a larger correction. As such, we are standing down from the bearish bias for now.
STRATEGY: EXIT SHORTS