S&P 500 futures were soft overnight, dropping to a minor new low under that of Friday afternoon but held a 25% retrace from the Friday morning high to the wave II low on July 11th. This could mean that Friday was the wave III high and the low this morning a wave IV. I can’t get excited about buying up here but looking a little too aggressive to sell while above 4546.00.
Bonds retested resist at 127^01 and drifted lower this morning. So far, not enough of a drop to feel confident that wave [B] down has started.
Nice to see crude pushing lower away from 77.35. Being under the 20 period EMA on the 240-minute chart, we might be in the early stages of a reversal but need under 73.50 to feel good about it.