Yesterday’s aborted rally up to 113.99 may have been the 5th Elliot wave I mentioned in my analysis. It looks incomplete so could go higher, particularly given the strong underlying support at yesterday’s lows. This includes resistance-turned-support from the major trendline down from July ’10 highs and the top of the Ichimoku cloud.
In spite of the recent acuteness of the move down there is a good chance this rally will persevere with an upside target at the line of support and resistance at 114.15. Further weakness, however, could fall back to the recent lows at 111.50.
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