First Look: 2022-12-30
S&P 500 futures were soft overnight and the Chicago PMI at 9:45 didn’t help pushing futures lower into deep retrace values. However, that could be a wave [II] low and now early in a wave [III] of c of (ii) up but critical for bulls to recover 3853.75. The bearish alternative is that wave c of (ii) terminated at the first target yesterday and now is early in a wave (iii) down. I lean towards the former, but I counsel patience and let the market prove itself. Why? We are getting closer to a point where the market will punish bulls and I don’t want to be overly clever.