Submitted by Nic Lenoir of ICAP, H/T Zero Hedge
Keep your eyes on the support line. Yesterday at 1,041, the support for the S&P future is today 1,044. From the tops we had a perfect a-b-c zigzag, with a=c right on the nose as shown by the Fibonacci extension, so the move lower could have been a standard correction before a push higher. However for now the rebound from the initial test at 1,041 yesterday shows a confused price action, which looks more like consolidation before a break lower than the start of renewed strength and continuation of the bull move. That’s what Elliott purists can observe here. Other technical observations show the MACD has turned momentum but we are not in negative territory just yet, quite a way from it. Certainly expect the market to attempt a run higher into the close to turns things around and not close the week in trouble.
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