S&P 500 Futures
Israel finally launched their counter and from what I’ve seen so far, the strikes seem to be pretty mild and not likely to cause Iran to escalate. If this is the case, this is the ideal scenario. Bulls can now step in and hold positions without fear of a surprise. I’ve seen this sort of thing before where a major event takes place during the overnight session, and it turns into a major low. Recovering 5011.75 is a good sign and if the make it back to 5050.00 or better yet 5061.75, don’t fight the advance.
Bonds
ZB bounced up to test the 116^02 resistance and rejected it. This might be the end of the expected wave [IV] bounce and now down in the last leg to complete c of (b).
Crude Oil
Crude firmed up where I thought there would be a bounce but instead of a minor bounce, because of the Israeli strike, moved up hard overnight in what might be a (B) of [IV] high. Note how CL has given back much of the overnight advance. I’m thinking crude now settles into a sideways pattern prior to pushing to a minor new high next month.
Dollar Index
DX not moving much in the grand scheme of things which is fine as I prefer more sideways than down for this correction.
Euro
Prefer a bit more bounce in the Euro but need to get over 1.0689 to get that started.
Gold
GC spiked up on the news and settled back down to 2391.70. I favor this lower high holding and gold pushing down to at least 2326.20.