SPX had a gap down this morning and poked under the 20 period EMA, but I can’t see being bearish just yet. As long as SPX holds above 4114, there is a chance for continuation higher in a ‘V of (C) of [II]’. Yes, it is a minor negative that they couldn’t pull off the continuation late yesterday or this morning but shorting a dull market is not a good idea. I like pushing up and trying to fill the overhead gap late today ahead of the CPI tomorrow morning.
Crude put a little pressure on the 71.90 support and 20 EMA on the 240-minute chart before recovering and pushing up for a test of 74.05 or 75.10 in what I think is the last stages of wave ‘(A) of [B]’.
Bonds slipped a little today but while I certainly expect ZB to head lower in a ‘iii of (v)’, I wonder if we need a small bounce first.
Gold pushed up over 2036.40 which I mentioned as possible last night. Will see if this can turn into a wave (IV) high and drop down to a new swing low under 2009 tomorrow.
Very promising action in Euro this morning as it poked under 1.0997. Now need it to spend some time under that level and drop through 1.0964 though probably won’t see that happen till after the CPI
.