Crude

Crude spent the better part of the morning in some sinister chop fest of a complex corrective before breaking down. Not unexpected price action.

I have made some label changes. I'm giving structure the benefit of the doubt here and assuming that we completed an impulse up.

If we have 5 waves up, and it's by no means a certainty, then we can expect a 3 wave structure down before resuming upside price action.

Notice that we reached the top of the consolidation channel we have been in since the recovery highs (20 days to be exact). It's not surprising that price couldn't push through, though I think that's coming soon.

This is an intraday look at the back half of what I believe was an [W][X][Y] expanded flat.

It appears that we should have a little bit more upside before price turns lower.

If price takes out today's high, then this view, as I have labeled on the chart, is invalid.

I would also be concerned if we didn't get a retracement to at least the 50% level.

There are a lot of options right now of what structure may have up its sleeve. The more price action we see, the more of those options we can eliminate.