Here is an update of my analysis for the S&P 500. Watching futures this morning I can see that we are headed for a drop this morning. Futures are on the last leg (C) of a correct wave. There seems to be 2 subwaves that need to complete in that last coercive wave as of writing this at 8:45am. If that is true, then at the opening bell it is going to look pretty ugly. I expect the retail crowd to jump on that and drive it down to the 3080 (maybe even 3060) level by around 10:30-11:00 am (could end sooner). Maybe we will gap down but rally right back up? I expect that the market will shift into rally mode and push to 3200 in the next day or so. After that, there should be a noticeable correction back to the 3100 level before a serious rally goes into effect.
Lets see how this plays out.
Hope this helps and happy trading.
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11:35 am update Gapped down followed by 1-2 minute rebound and then bottomed out (long shadow) at 3095 at 9:37am. There were 2 minutes of strong bullish green candles that rallied quickly back to 3118. That was a much stronger recover than I expected. That is a good sign and it seems that market is slowly drifting upwards now through the early afternoon. Be intersting to see how the day ends. A strong rally at the close or a taking of profits?