To set up a C-wave lower that will complete the price structure of what I think are ABC corrective waves in the major US equity indexes, price has to complete its move into resistance on the bounce out of last week’s lows. It looks like we are getting close …
S&P 500 Index Futures Contract (ES_F) – 240 Minute Chart
The ES futures contract has completed a minor abc corrective bounce right into a logical area of resistance. Price shouldn’t move much higher than the highs of this morning’s trading (around 2787.75)
NASDQ 100 Index Futures Contract (NQ_F) – 240 Minute Chart
The NQ futures have not yet broken the minor a-wave high of 7143.25 made on November 2nd. A break of that high is needed to make an official abc-structure for this bounce into resistance.
Russell 2000 Index Futures Contract (RUT_F) – 240 Minute Chart
The RUT has completed what looks like a minor 3-wave corrective bounce into logical resistance.
Bottom-Line … for the next wave lower to really have the flush-out power and thrust that the C-wave can often have, the market needs for all of the bull-tards to get back in long. The election news of a split US government may be just what gets the last trader back fully long expecting a clear sailing for the Xmas rally that is sure to come like it does every year. Maybe Trump’s speech at 11:30am eastern actually sets the absolute high for the corrective bounces.
Cheers … Leaf_West