The Day Ahead: PM Edition 2024-05-20
Slow news Monday
Bonds
ZB is on plan with a retrace down from 118^26 in what I’m labeling [A] of ii. Initial support at 116^14.
Crude Oil
Crude is correcting the last few days of advance this morning in what still looks like the early stages of a [C] of ii. Bulls don’t have too much to worry about until CL drops under 78.05.
Euro
The dominant cycle on the 240-minute chart of the Euro suggests that the wave (IV) correction is either complete or nearly complete and that we should expect at push up in (V) of [C] of ii with a target of 1.0964.
Gold
As per my post last night of the weekly chart, I’m moving wave [III] over to the right. Short-term gold bulls are in control while GC is above 2406.50.
S&P 500 Futures
I expected a sideways pattern today though to be fair the S&P 500 futures were stronger this morning than I expected. As I type, the market is just above weak support at 5332.75. The more important level I’m interested in is at 5321.50 which is the level short-term bears need to beat for confirmation of a deeper (C) of [IV] getting started.
