Well the contracting broke but its not convincing as normally there's a bigger tank afterwards in theory. In EWT, ending diagonals such as these appear in Wave 5 or Wave C positions. If we are gonna get a bigger retrace, you would count that as a C wave, but im in 2 minds as to whether this will happen. Reason being the indices have either done 5 up or we have had an extended 3rd which means this small retrace was a 4th before we have one more up for a 5th.
The ending diagonal could be the clue though for a drop as its also turned on 61.8fib. Throughout this Primary wave 2 rise the dollar has weakened and the indices risen. The USD currency pairs are giving mixed signals as to whether this has topped with pairs such as EUR/USD not making new highs whereas the indices have.
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