Tuesday’s trade was mostly range bound and about the only thing of note was the continued slide lower in volatility with the VIX finishing the session below 14. Basically, one can say that the markets are extremely complacent on the potential for a strong downside move. There are other signs out there that continue to lead me to the markets being in the finishing moves to complete the larger Primary B wave still in progress. Both the ES and the NQ are still tracing out 4th wave declines, minute in the ES and Minor in the NQ. This then keeps in place the expectations for finishing 5th waves up are still to come with both markets producing additional highs above what has already been seen.
Tomorrow pre-market at 8:30 AM EDT the U.S. Trade Deficit data will be released, with Consumer Credit being released at 3 PM EDT.