EEM, XLE updates 10/2

EEM: Counts best as being (green) minor-3 of (red) intermediate-iii of (yellow) major-1 of (blue) Primary II or pink (Cycle-3). It keeps impulsing higher (5-waves structures) since it’s start in 2003, and it keeps correcting lower (3-waves structures). Note this is a monthly chart. If minor-4 is underway it should drop to around $40.50, before minor-5 rallies price to about $48.50/49.50 for all of intermediate-iii. After that we’ll get a intermediate-iv correction and intermediate-v should then complete major-1 likely at around prior resistance: $50/$52. The latter is also the 0.764x extension of Primary-I, which is a common Fib-target for the next lower first wave; in this case major-1

EEM

*************************************************************************************XLE: Not too much to add compare to the 8/28 update although price kept margin higher. My preferred view is that price is now in major-c of Primary B, and only a break below last month’s low ($61), will have me change that to a “Primary C is now underway POV. Ideal target for Primary B is $90.

XLE

The reason I’d still like to see higher prices is also based on a timing perspective. Primary waves for XLE should take longer time.