S&P 500 futures were sideways overnight hugging the round number of 4800. Buyers stepped in on the day session open pushing toward the next overhead point of interest at 4812.00. I can’t say I’m enthusiastic about buying up here but need to see at least under 4809.00 before being serious about a short. As I mentioned in my post last night, I’m willing to allow for another down/up sequence to play out over this week and maybe next but it is getting very late in the advance up from the late October low.
I was a little overeager to call the end of the first step of the wave ii bounce in crude as it tested the 20 period EMA on the 240-minute chart and rallied. There is a Gann type target at 74.45 but I think that is a pretty aggressive fade considering the 38% retrace is around 75.53. I’d be more apt to fade on a poke past 74.45 and a fall back under.
I’m thinking bonds do a series of low degree four’s and five’s prior to setting the ‘a’ wave high.