The Day Ahead: PM Edition 2024-08-28
GDP and Initial Jobless Claims Thursday morning
Bonds
ZB continues to chop sideways allowing the daily moving averages to catch up. I still expect another leg into the 127 handle.
Crude Oil
Crude dropped under 75.25 today but found support before creating overlap with the August 22nd high and thus looks like a low degree fourth to me. Bulls need CL to recover 75.25 for proof that wave (V) up is starting.
Dollar Index
A small bounce in DX today which is consistent with the idea of another up/down sequence prior to the final low. Also, interesting that next projected cycle inflection past August 30th is September 9th as that is only one trading day off from a projected inflection in the S&P 500 futures. I’m assuming that will be an equity index high.
Euro
While Euro is above 1.1096, I’m giving it a chance for one more high though it is very late in the pattern. It could turn out that the high is already set and the next move up sets a lower high.
Gold
While above 2539.70, I’m allowing for gold to push to another swing high.
S&P 500 Futures
Wednesday was interesting as the market sold off through the day ahead of Nvidia earnings. There was a late day bounce but a new low after the day session close after Nvidia earnings were announced. Next, we see a major bounce taking place overnight where half of the decline for the day is being erased. I think this can qualify as a wave (IV) low and support a move up into September 6th.
