Crude ended up rejecting the 72.97 to 73.28 area overnight and thrust lower today. I’m reluctant to be in a hurry to call wave [B] complete so lean toward this being near the end of C of (B) of [B] instead of the start of the last leg of the ending diagonal down. Next support for a C or III in an alternate, at 68.60 with 67.30 under that. I wonder if they can firm up late today or early tomorrow and rally into early next week to finish off the [B] wave. Short-term bulls begin to make a dent above 71.05.
S&P 500 closed the gap from last August and has been soft since. That said, I don’t want to be too hasty to declare the high set as much as I would like to. For now, I’m treating this as a possible small correction fourth wave correction and giving bulls a chance to pick this up again to retest the high. That said, it is very late in the game and I’m not near as confident in buying pullbacks as I was last week. In general, the theme of “buy the rumor, sell the news” on the debt ceiling drama has worked well. The only question now is if there is one more act in the play, the actual passing of the bill or if the agreement was good enough.