Friday’s trade did see the markets slide lower with each rally attempt met by rejection and additional downward slides. For now though I am continuing to view the overall move as corrective and a minute 4th wave. Within wave 4 – waves ‘a’ and ‘b’ are complete with a ‘c’ wave still in progress. Within wave ‘c’ it appears that waves 1 and 2 of ‘c’ are complete with wave 3 of ‘c’ still unfolding. As globex starts the buyers are present and haven’t been rejected just yet. Unfortunately I would expect a couple of additional rounds of “rejection” as waves 4 and 5 come in to complete wave 3, with an additional 4th wave bounce being followed by wave 5 of ‘c’ again rejecting upside and taking the market lower. Support for the balance of wave 4 remains at 4439 to 4435 and then 4423. The “no break zone” is just under this at 4414.75 to 4406 depending on how the charts are calculated with the roll from September to December takes place.
September 12, 2021