I just wanted to put up a quick update based on the overnight futures activity. During the Globex session, the market put in a lower low and since that move, the market has been impulsing. We certainly have an important move coming, so here's what I suggest:
- Is this bullish? It is possible that our minute wave 1 finished during the globex session (I never like it, but it does happen sometimes). If this is an A or 1st wave, then we will undoubtedly get a B or 2nd wave. This price action will be bullish if we correct in a 3 wave pattern and begin to impulse. That is the long signal. It should come up with immediate weakness at the open (within 30 min) and then after a ~50% retracement reverse long. Once we take out the opening high, the market should really go.
- Is this bearish? Well, we could be in a wave 4 flat, so what will happen here is we will get selling near Friday's high in an impulsive fashion. From here, the morning high will not be breached until after we see the finish of minute wave 1.
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