S&P 500 futures opened down on Sunday evening near the 38% retrace which is consistent with a fourth wave consolidation. S&P 500 futures climbed from this support through early Monday morning into just after the day session open. Next a little scare of a possible explosion near the pentagon caused a quick retest of the Sunday evening low before a quick recovery as the Twitter post that caused the drop was deleted. I suspect the wave (IV) has been set but could easily move sideways to run the clock. I like the idea of buy the rumor, debt ceiling talks, and sell the news, debt ceiling deal, as a theme. For form, only need a new high over that of last week to complete five waves up from the May 4th low which in turn can be a five up from the March low
Crude has held support at 71.00 in the early morning and has been slowing climbing since. I’m penciling this in as early in a wave III of (C) of [B] up. Next resistance to beat is at 73.25.
ZB has slipped lower to test the next target for a wave [III] low at 126^20. A good idea to lower stops or otherwise manage if trading short.
Euro appears to be working on a wave ii bounce. Very short-term bulls are in the best shape if Euro holds above 1.0815 and grinds up toward 1.0890 and 1.0929.