Pros: Channels well. Nice clear 3rd wave extension
Cons: The 5th wave is very truncated (however it is very similar to the length of the 1st wave)
The VIX may have bottomed, or it may not. However it did make a double bottom at 21.5 and we see some strong positive divergence on the hourly indicators.
Given this information and coupled with how weak the last wave was in the markets (based on indicators, momentum and internals) and how the sell-off is beginning to shape up, the bearish case (at least for the short term) is looking very compelling.
