We may be having a 1-2 1-2 formation where the SECOND wave 2 is just completing or near completion. Then we should have the downward move resume again.
REGARDING OVERLAPPING 2ND WAVES
An overlapping second wave is a term used in Elliott Wave Theory to describe a situation where the second wave in a five-wave impulse move overlaps with the price territory covered by the first wave.
According to Elliott’s Wave Theory, impulse waves are composed of five waves, with three waves moving in the direction of the overall trend (waves 1, 3, and 5) and two waves moving against it (waves 2 and 4).
In a normal impulse wave pattern, the second wave retraces a portion of the first wave but DOES NOT OVERLAP IT. However, IN CASE it overlaps, multiple possibilities open up
It can EITHER indicate a weaker correction, and traders should be cautious before entering trades.
OR
It may also indicate that the overall trend is stronger than initially thought, and the trend may continue in the direction of the first wave, IN OUR CASE DOWNWARDS.