The last post on March 24th showed a head and shoulders pattern. The neckline was breached on 4th April and the test of the neckline seems complete as of today. This post will put that pattern into the context of a wave count.
Although the market topped at 20203 on Jan 29th in terms of the wave count the market topped on March 11th. As from the chart the market has completed waves I & II and is in the process of forming a wave III down of which 1 & 2 of minor degree also seem complete. A breach of 18175 will confirm that a 3rd wave of III down has indeed started.
In conjunction with the head and shoulders post what we should see here is a move down to 17450-17000.
The count will be invalidated if another up move breaches the 19025 level.
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