S&P 500 futures climbed overnight but stalled just under the Globex high from yesterday. There was a slip lower into the open but at the time looked like it could have been a minor retrace. After the U of Michigan numbers at 10am, the markets pushed down with some force negating the short-term bullish path. Now what? Best I have for form is wave [II] was set at the Wednesday high followed by a somewhat sloppy wave (I) low Wednesday afternoon. Everything since the Wednesday low has been corrective and now down in a wave (III). Might get a small bounce from a test of the Thursday low but overall think they can push lower toward the Wednesday low and perhaps a bit more to test 4107.50. Resist for any bounce at 4131.00, 4137.50, and 4148.50 for a deep bounce which seems a stretch.
I think the drop in Euro is finally taking a toll on the equity markets. Euro is currently extending lower in what I’m calling wave [III]. Next supports at 1.0863 and 1.0803.
Crude is slipping a little lower to near the 69.80 support. The cycle composite suggests the best time for a (B) wave low will be on Monday.
Gold is tricky. Technically can be considered to have five waves down from the high but the current low is a little short of where I would expect the wave (V) to terminate. I think it best to allow for lower while under 2026.75.