BAC: With the recent drop we’re either dealing with the diagonal I pointed out in the earlier update and wave-ii is about complete, or in a standard impulse, wave-ii can reach the 50% retrace at c=a and THEN wave-iii kicks in. For now the TIs are on sell and want to see lower prices. A move and close back above the 200d SMA is a positive sign. But, when things are unclear and uncertain one may as well stay out and try for something else IMHO. I rather trade more certain price patterns than these overlapping messes.
C: Same as with BAC, the recent drop is rather steep, but still fits with a wave-iii and iv of 3 pattern. A move below 71.50 from current levels (without making a higher high first) will be trouble some as than wave-i and iv overlap, which is not allowed in a standard impulse pattern. We then either have to move this chart to an ending diagonal pattern as well (I say as well as we’re dealing with the same type of pattern on the indices) where the whole advance will consist of larger three-waves (which internally can consist of 5 waves). When things are unclear and uncertain one may as well stay out and try for something else IMHO.
JPM: Same story as the other two banks. Most Bullish option has this as a wave-1, 2 of iii setup, with wave-3 of iii (strongest wave yet to come), or we’re also dealing with this pesky (blue) ending diagonal pattern… Note, JPM already made a new ATH so major-5 has essentially done it’s job, but their appear still smaller waves to be missing. Thus like everything else in this current market environment the setups are low odds as there are many possibilities. A break below $113 is bearish, but can still mean wave-ii is underway morphing into an irregular flat correction… When things are unclear and uncertain one may as well stay out and try for something else IMHO.
FB: Yesterday I showed that if FB moves above $171, the possible i, ii, iii, iv, v setup would be off the table. This is what happened today, which means intermediate-a of major-a is complete. Intermediate-b is now underway, and must subdivide into three minor waves, with minor-a now underway. The ideal target zone for wave-b remains the same: $181-$194. Once wave-b completes, wave-c can take price down to $136-87 depending on where exactly wave-b tops and how far wave-c will extend…