SP futures reached the 61.8% retracement overnight. This bounce occurred before the cash market opened. This does not mean that the cash market cannot play catch-up.
On the cash index (SPX), this morning's low would be the bottom of the wave that began from yesterday's high. We are just now approaching the 50 percent retrace of that wave.
If that move down was the start of a larger 3rd wave, then I would expect to see a rapid move down as soon as this correction completes.
Okay, as I was writing this, phone rang, back now, and I see market tagged 50 percent retrace and is heading down again.
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On the cash index (SPX), this morning's low would be the bottom of the wave that began from yesterday's high. We are just now approaching the 50 percent retrace of that wave.
ReplyDeleteIf that move down was the start of a larger 3rd wave, then I would expect to see a rapid move down as soon as this correction completes.
Okay, as I was writing this, phone rang, back now, and I see market tagged 50 percent retrace and is heading down again.
DJI hit 50% on the button. ABC up is still intact.
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