Crude

Crude continued its decline early in the session as was discussed yesterday. This appears to have finished off a nice 5 wave structure, while setting new corrective lows in the process.

My current count has crude completing 3 of C. This means that we should see some messy action for the next few days as it works on a 4 wave. Based on the price action so far and wave 2's structure, I'm looking for a flat or triangle to trace out. The above assumes that 3 finished at 59.25. It is entirely possible that we ended 5 (my alternate count).

There is no question that this witch is in need of a retrace, having been down 6 of the last 7 days and reaching (and surpassing) the 261.8% fib projection of wave 1. We have also reached wave 4 of lesser degree. I believe we have started that retrace process.

The chart to the right shows the nice RSI divergence that is in place. We have rallied nicely off that divergence thus far.