JP225 15min: Zigzag Decline from Oct 6 – Bounce to 65,700–65,800Japan 225 IndexPURPLETRADING:JP225LIVERMORE333JP225 (15min) Day Trade Count The decline from the Oct 6 high is viewed as a zigzag (a-b-c) in three waves. We are currently in the impulse 5th wave of wave c, and it appears to be in its final stages. The current b wave has the appearance of a triangle. Since triangles appear only exceptionally in wave 2 of an impulse, this also supports the preference for the three-wave corrective view. Short-term Outlook Once the 5th wave of c completes (or is very near completion), a temporary bounce toward the 65,700–65,800 area is expected. (Near prior resistance, the upper channel boundary, and short-term moving averages) Subsequent Scenarios Zigzag ends here If price clearly breaks above 65,700–65,800 and continues higher → the decline is considered a completed corrective three-wave structure. Develops into a five-wave decline If the bounce is rejected near 65,700–65,800 and price makes a new low → five-wave structure completes. Note of Caution There remains a smaller possibility that the current impulse within c is still only wave 1 of the larger zigzag c. In that case a wave 2 bounce would be followed by waves 3-4-5 lower. This would make wave c relatively larger versus wave a, produce a shallower bounce, and then accelerate to the downside. Key Levels to Watch Whether 65,700–65,800 is broken and held Whether recent lows are taken out At present the preferred view is “5th wave of c complete or nearly complete → temporary bounce,” but possible extension of the 5th wave still warrants caution. #JP225 #ElliottWave