Midday Update: 2023-07-06
Equity indices weak overnight, but bulls still have a chance for a little more
As you know from the midday post from yesterday and the evening post late last night, I had thought there would be a slightly deeper correction in a small degree fourth wave. Why? Because the advance from the June 26th low looked more like a three and needed one more retrace and push up to make a five. However, the market decided to run with that three-wave high and turn it into a ‘B’ wave of a more complex larger fourth wave correcting from the June 16th high. The low late this morning at an C=0.618A at 4421.00 in futures is consistent with that hypothesis. Are lower targets possible in (IV)? Sure, a retest of the June 26th low is possible but not required. The intraday advance from the low today has been very steady and hasn’t easily let anyone on the long trade that didn’t enter early near 4421.00. Now we will see if bull can hold most of the gains this afternoon and push over 4449.25 and 4462.50 after the NFP tomorrow morning.