The three wave move since the Feb 20 top
into the low of 1481.75 on Feb 25 is either Minute W4 or the first
segment of Minute W4. It's clearly a zig-zag, and since Minute W2 was a
flat the sequence satisfies the EW rule of alternation. If Minute W4
is complete at the Feb 25 low then Minute W5 is now in progress. 5th
waves generally travel a distance that is related to 1st waves in terms
of a fibonnaci ratio. On this basis, possible targets for Minute W5 are
at 1531.00 where Minute W5 = .50 x Minute W1, then at 1542.75 where
Minute W5 = .618 x Minute W1 and finally at 1580.25 where Minute W5 =
Minute W1.
However,
it's possible that Minute W4 is not yet complete. Minute W2 lasted 11
days. If Minute W4 was complete on Feb 25 it's duration was only 3 days,
so there is room for Minute W4 to drag out a bit longer and not be out
of proportion. It's entirely possible that Minute W4 could be in the
process of forming a double or triple zig-zag with the low of Feb 25
being only the first zig-zag in the sequence. Also, it could form a
triangle as conceived in the chart below.
