We expect the entire correction to be between the 23.6% and 38.2% fibonacci levels of wave iii°. This means a 2%-3% drop before the uptrend is resumed. For the moment we let the market do its work and let wave action play out.
The Dow traced out a similar structure as the S&P 500 lately. All price action took place within the narrow and steep light green trend channel in our first chart below.
The index has not shown any significant corrective action inside the green price path lately. We therefore conclude that minute wave iv° has not been seen yet.
The short term direction remains up.