There could be some buffeting depending on what comes out of the G7 this weekend, but I think your call is more accurate. Correction incoming. I mean, there is a guaranteed gap down coming on Sunday night ET if we hear nothing new. ONE MAN. FUBAR.
First crude chart - Low#2 should be shifted right one bar (lower close/lower low). High# 3 should be shifted right one bar (slightly lower high but higher close) etc. Swing highs and lows where a few traders get trapped are often a trap for those looking for important chart reversal points. A closing price especially on a daily/weekly/monthly chart is far more important.
No. Do short term trading between turn points. Maybe intraday or 2 days. I do put support and resistance lines on my charts usually. This is good to use on trending markets. The reason there are flag and pennant patterns is due to these cycles.
As mentioned in my post, this is not perfectly accurate. Minimal changes to the position of the numbers isn't going to help anything. There is some "artistic license" in doing these.