I’m going to use intraday futures charts of the S&P 500 to illustrate what I think is happening today. I think the low this morning was a (B) wave low and rising in (C) of [II]. First chart is a 24-Minute chart pointing out the major target zones. Once 4117.25 was cut through this morning, 4122.75 and 4129.75 became magnets. Next major target range is 4137.50 to 4145.25. Note that the RSI, at the bottom of the chart, is in the overbought zone at a possible cycle high.
Next is an 8-minute chart from my intraday workspace. I posit that we either have set or close to setting a wave III of (C) high. Next extension target up is at 4134.00. Third waves are notoriously difficult to fade so more a warning to be raising stops if long into this area. Wave IV supports around 4123.00 and 4120.25. If 4134.00 is tested, raise those supports up a couple of points.
As most of you know, the equity markets are closed tomorrow, but it is odd that we will have the NFP release in the morning. I might post something tomorrow morning if something interesting happens but in general, expect the next post to be late Sunday evening when I go over the weekly charts.
Enjoy your long weekend.