S&P 500 futures were soft early this morning but firmed up on the cash open. The drop in futures was consistent with the aggressive bearish count that I was following which had a possible low degree two at the Friday morning high. Since I am wary of the action after a three day weekend, I’m not surprised by the bounce attempt so much as how strong it was. SPX is now up to the limits for a low degree lower high against 4099 or 4105. Over 4105, I will have to assume the advance up from March 24th needs another high and hence expect at least a retest of the April 4th high if not a push for 4136 or 4141 in SPX. If bears show up in the afternoon today, they need to push SPX back under 4105 to cause bulls to capitulate.
You are well aware I am really paying attention to DX and Euro for possible reversals. Euro is cooperating this morning dropping down to the next support at 1.0880. Now will be looking for any bounce to form a lower high and a break under 1.0880 toward 1.0809.
Can say something similar in bonds as there might be a tiny impulse down from the April 6th high and now need a lower high to form followed by a push down to 131^06 and lower. Overhead resistance at 133^01 and 133^20