Monday’s trade was again strange and full of surprises. The Intermediate wave 2 corrections remained in tact, although I do present a view whereby the Intermediate wave 2 could be complete in the ES and still in process with the NQ. With the weightings being what they are between these two indexes I can’t see very easily a count that would include one going down while the other goes up. Therefore, I’m forced to give more time to the markets to make the move clear. And that I believe will be coming with Wednesday’s GDP data and also Friday’s Employment Situation data. But that doesn’t mean that the markets can’t be crazier and choppy and incredibly ‘squirrelly’.
For tomorrow – I discuss the counts, and the potential moves that lie ahead. I give two sides of the picture for both tonight. And now we await the markets to tell us which will unfold and confirm direction.
Also, tomorrow pre-market Consumer Sentiment will be released. While I’m sure they will be a swing it may be in both directions. I would expect the downside to continue as well — reaching levels I discuss in the update. Wednesday pre-market we get GDP – and that could keep things on the quiet – sideways- choppy side tomorrow.