In the near term the US stock market looks like the near term high is in place for the greater B wave. The issue now is to asses the first wave 2 correction. There are 2 scenarios at play. Either we have completed the first sub-wave and are on the process of a smaller wave or the other scenario is that we are in the process of carving out the first A wave of a greater ABC pattern shown below. This will take time to demonstrate which pattern will play out.
Scenario 1 which would expect to see prices rip lower early next week.
Scenario 2 is a longer drawn out ABC pattern that will take place over next week and cause a lot of sideways choppy price action.
