S&P 500 futures were bid up till about 6am at which point they tripped and fell back down under the close from yesterday. That was followed by a choppy bounce in to the cash open and another choppy drop to just after 10:30. Basically a failed break up in the premarket and a failed break down late in the day session morning. I have to allow for a minor bias up to put pressure on 4148.50 and a try for 4157.25. Net, difficult trading day. Better opportunity on the CPI number tomorrow morning or the FOMC meeting minutes tomorrow afternoon.
Crude tested support at 79.20 this morning and is trying to push up over 81.50 for a minor new high. I’m penciling this in as late in (C) of [A].
I keep going on about DX and Euro but think it very important. Interesting that Euro pushed up to 1.0965 and is starting to pull back. Bears need Euro under 1.0928 to get a move lower started. Note, I think a reversal lower in Euro will have negative implications for the equity markets. If Euro does reverse, S&P 500 futures are much less likely to push for a new swing high past 4173.25.
Nice to see bonds pushing down away from 133^01. The case for the wave (iv) high being set is rising.