In last night's blog post, I stated that I am unable to make a high probability forecast. Nothing has changed as the market appeared to be on a verge of following though, but a negative Philly Fed report coupled with a shortened trading week has at least temporarily beaten back the bulls.
The chart attached is purposely marked without subdivision wave labels as of w.3. Each diamond represents a three wave pattern. If 1335.75 isn't taken out, then the possibility exists that price may rotate back into the previous range in 3 wave setting up a triangle w.4.
Note: I have also noticed that certain commodities exhibit a similar pattern. Sticking with the all-in-one theme of markets rising / falling together based upon the USD movement, there is a possibility that commodities are projecting the next move for equities as they appear to be slightly ahead in terms of pattern development.
Should 1335.75 be taken out to the upside, then the wave structure will be limited to a few counts.Look for me to expand on the commodity theme and updated wave counts for the emini's during this weeks edition of "Heard On The Street".
Best of Trading
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