UPDATE: 3:00 AM
The futures rallied nearly to the .886 retracement of the drop from 1754 to 1734 and are backing off a bit. It remains to be seen whether 1754.50 will hold or not. Recall, 1767 is the next higher Fib — the 1.618 of the plunge from 1685 to 1583 that began May 22.
The little purple pattern tracing out gets to 1766 at its 1.618, so there’s some logic to it. However, we’re long overdue for a trip to the bottom of the red channel.
The level to watch is 1755. If ES clears it, 1766 is in play. Otherwise, our forecast for a quick, steep drop is still on the table.
Please bear with me until the morning, when 100 pages of legalese will be winging its way to your inbox.
As I wrote earlier this afternoon, I will send docs to everyone who asked to be on the mailing list and completed an accredited questionnaire. It will take most of the morning, so I won’t be able to follow the markets very closely. But, yesterday’s post is full of cool charts that should provide plenty of guidance.
UPDATE: 11:45 AM
50:50 between the purple or red targets, but tagging SPX 1764 first probably means a higher subsequent low, perhaps 1729 instead of 1720. Watch for a reversal at the .786 of 1755.30, just to set up the white 1.272 (1764.45) where it intersects with the purple 1.618.