The intraday idea that I was working with yesterday in the afternoon, that the late day low in the S&P 500 was a small ‘b’ wave type low and to look for a ‘c’ wave type move up overnight into this morning played out. I’m penciling in the high this morning as a low degree wave two, and now in a wave three down. Some soft support at 4107 but like 4093 or 4077 better perhaps late today. On an intraday basis, the drop is pretty extended in the short-term so 4107 might trigger a bounce. A recovery of 4128 would be a negative for lower today.
A quick look at Euro intraday has it starting to push down from the resistance at 1.0792 which suggests the wave iv bounce could be complete and now early in wave v of (i) now. That supports the thesis of a soft equity market for the next few days.
Also interesting to see crude trying to push down from the 78.65 resist, a 62% retrace. Too early for bears to claim victory as still above 76.10 but a possible start.
Just a question: What are the arguments for a wave v (truncated) ? Thanks for all Bonus
Thanks for YOUR special explanations.
Always interesting to learn about Truncated waves.
Regards