The S&P 500 fell through the shallow supports this morning and pushed for the larger scale targets. I’m in a bit of a dilemma here in that on one hand, I think the equity indices are due for at least a pretty deep retrace, and on the other hand, I can’t say that it is impossible or even unlikely to get a new high from this area. So far, the form is of a three which is corrective. The best hope for bears is that any bounce is held back by 4557 or 4569 which turns into a fourth wave of a leading diagonal down. I would say the overall bearish odds increase under 4508 though could still bounce for just a bit lower at 4494. Bulls need a bounce tomorrow, along the lines of the theme of higher into the tech earnings after the bell on Thursday and have the market like what they hear there and on the NFP Friday morning.
I do like the crude drop today as it dropped under the first support at 80.60. For bears to feel good about a reversal, they need CL to trade under 76.70.