The globex session had the market down, but the bulls were able to salvage the open and race to retest Friday's high. After a few failed attempts of trying to get past 1090, the Bears took over and pushed the stocks over the edge late in the day.
Here are my observations:
- We had our RSI(5) extreme oversold condition at the end of Minute wave 1, and we have yet to exceed that level. Since I fully expect to exceed that leve during Minute wave 3, then we have either:
- not hit the 3rd of 3rd (subminuette wave 3)
- the big one will come during the 5th of 3 (minuette wave 5)
- We are either in a minuette wave 4 triangle and will continue to bounce back and forth tomorrow and Wednesday or we are hitting subminuette wave 3 tomorrow and should see Friday's low removed in the morning.
- We have plenty of room left on the weekly RSI before we hit a significant oversold condition and even more for divergence to form
- I'm looking for a minute wave 3 low around spx 930.
Best of luck!
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