The good news is SPX moved lower to the top target in futures and put in a bounce, so on plan so far. Where the morning forecast is going a bit awry is the bounce has been more persistent than expected and thus the idea of getting another low today or tomorrow is weakening. I characterize this as a struggle between what is more important in the short term, earnings or the FOMC next week? Technically this drop could be a simple a-b-c movement down in a deep wave (IV) in the advance up from the January 19th low which would give bulls a chance for yet another minor swing high over that of January 23rd. Bears on the other hand want to come back in under 3999 and force a new low under that of this morning. I suppose at this point the deciding factors will be IBM and Tesla earnings after the bell.
Comments
No posts