The S&P 500 started the day on the back foot today as we had a gap down and some continuation lower through the early part of the day session. I think this drop is consistent with the plan which calls for a (B) wave retrace. Note that ‘B’ waves can make new price extremes. I think it worth watching for an afternoon reversal up in a (C) of [ii]. Would be bulls need SPX to base a bit over 4475 and not fall back under lest there be a try to test the 4463-4458 support zone. Provided bulls can build a base in the early afternoon, 4493 becomes the first target followed by 4510 though the latter seems more viable tomorrow.
Bond are testing the practical limits for a low degree fourth wave against 123^02. Bears need to come in soon and push ZB under 122^07 to have a chance at a new low on the swing in a possible (V) of [III].