This is a slightly update version of the chart I posted last night of the S&P 500 futures. We had a pretty noteworthy reaction just after the cash open from just above the critical 4457.75 support which would be a sneaky target for wave [V] of i. Since then, we have seen an attempt to base. Worth watching to see if short-term bears capitulate this afternoon. If futures push up past the morning high, don’t be too quick to try a fade as the pop could last into early next week. On the other hand, if bulls fail to break above say, the hourly 20 EMA, as I type around 4493.25, then the door is open to test lower supports early next week, perhaps 4434.50 or 4404.25. I’m remaining open minded about which wave count is operative.
Bonds are acting like they are back on track with the forecast for another swing down. I’d like to see a new low under that of August 4th to complete (V) of [III] at which point there could be another up/down sequence before a possible low that could last months.
Euro looks like it needs another low under that of August 3rd to complete a five wave impulse down from the July 18th high.