S&P 500 futures were soft in the Asian session last night but started to firm up in the European morning. That bounce continued into the day session morning but has stalled late morning. I still like a bounce before lower but don’t want to minimize the danger if this support zone fails. I certainly expect lower over the coming weeks and months but want to see a bounce that recharges the bears such that the next time this area is tested they break under it with force. The trouble the equity indices have had in getting a bounce started may be warning that the speculated [C] of ii up is relatively shallow.
I have been looking for the Euro to bounce a little to make it easier for equity indices to bounce. There was a pretty shallow bounce but is starting to break intraday supports which is a short-term negative. I worry about a very strong trend lower starting after the next minor bounce.
The continuing bond weakness is probably a factor in both the inability for Euro to bounce and the softness in the equity indices. ZB has fallen today and nearing the next target for a possible wave iii low. Will see if bonds can firm up against 122^18 and bounce for a few days.