I’m posting a futures chart here so as to show the overnight action which had a bearing on what took place through the morning. You can see where I marked a possible impulse down from the high from yesterday. How would that fit the overall pattern? Since the major support level yesterday for a fourth wave held, perhaps we say a truncated fifth wave at the high yesterday and the first little impulse down. That would imply a wave (II) bounce up from the late morning low is developing. Initial resist for a wave (II) in the E-Mini S&P 500 futures, a 38% retrace, at 4147.75 has capped the bounce so far. That is a minimum retrace value and I think it best to allow for another try at it or higher to 4163.75 or 4172.00 late today or in the overnight. After that, we see if bears come out swinging hard in the European session and through the day session in the US tomorrow. As I type, minor support at 4131.25 is holding but a minor new low on the day to 4117.25 to 4114.50 would be acceptable in a ‘B of (II)’ low.
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