Friday’s trade followed through to the downside thus far is leaving the early high during Globex after the release of the Employment data as the likely completion point for the Minor wave 2 and opening the door for the kick off phase for Minor wave 3. I update the picture both Elliott counts and Fibonacci views. Currently the markets are favoring continued downside. I updated the inflation picture and lagging FED rate hikes. I discuss using the “line” chart for clarity over the “candlestick” charts.
Tomorrow is a federal holiday. Bond markets are closed, equity and futures are open. Volumes may be on the light side or heavy. If the demand is on the sell side looking for buyers, the volatility will throw the downside into high gear.