Was yesterday’s Fitch downgrade of the US the “shock” or “surprise” that would mark the completion of Primary wave B and begin the anticipated Primary C wave decline. In my opinion it is not 100% across all the indexes, but very close to sealing the completion points for the Primary B wave counter trend rallies. I have reinstated the recent highs in the ES and NQ as the completion point for Primary B waves and the subsequent waves leading up to this point. I have also labeled the decline thus far as minute waves 1 and 2 in both markets — currently then, both the ES and NQ are within minute 3rd waves down with both still needing additional decline before a minute 4th wave bounce would begin. I include initial Fibonacci levels for the larger minute 3rd waves in progress. Tomorrow pre market @8:30 AM Initial Jobless Claims and U.S. Productivity @ 9:45 AM S&P final US services PMI, @ 10 AM EDT ISM Services and Factory Orders.
August 2, 2023