S&P 500 futures had bounced in the Asian overnight session prior to the CPI print and extended those gains into 10am. However, as stipulated in my last post, I thought any rise is probably ephemeral and part of a wave ii. Indeed, bears began to take an interest again near the August 7th overnight bounce high and leaned in to force a new day session low. If this is a wave three down as depicted, while there may be minor bounces, the market should push to retest the recent lows later today and try for 4457.75 perhaps early tomorrow.
Nice to see crude oil playing along with the rejection of 84.80 paying the aggressive bears something today. The more cautious bears are looking for 82.70 to fail as support for confirmation of a reversal.
Bonds are even trying to get back on plan after a test of the limit for wave (IV) at 123^18. Bears are in better shape after ZB breaks under 122^07.
Might as well check in on Euro as well. Euro spiked to test resistance at 1.1080 and fell away with some force but bears need under 1.1030 to feel good about it.