Tuesday’s trade was a strange and also revealing day with regard to how the market traded and the EW count.  I discuss the advancement of the Minor 2nd waves, which remain in process.  Minute “a” is complete and within minute B, sub minute waves “a” and “b” are complete.  This then suggests that this afternoon’s sudden shift lower was most of minute “c” waves.  The charts suggest that additional downside is likely.  How deep is the question and I discuss and add Fibonacci retracements and Fibonacci extensions to give tighter levels for what is left with in the minute B of Minor second waves. So, this then suggests that there remains a rally to complete the larger Minor second waves.  I lay out a couple of scenarios that cover the upside potential and additional downside potential – with break points that would change the near-term picture dramatically.

Tomorrow pre-market Fed Gov Karshkari will be speaking at 9 AM EST and at 10 AM EST the ISM manufacturing data will be released.