Same Tune?

As we expected, yesterday’s pre-opening rally failed and new lows were reached by the end of the day — though we didn’t quite reach the upper end of our target range on SPX.   Here we are, 24 hours later, looking at pretty much the same set up.

The eminis are up 9 points, the dollar sold off nicely during the night, and the EURUSD is back below the support it tried to regain overnight.  Could this be a case of same tune/different day?

As we discussed yesterday, the dollar was due for a sell-off.  We got it — in fact nailing our proposed Point C (in yellow, below.)

The euro also complied, by putting in a wave C in its back test of the broken red channel.

SPX reached within a couple of points of the high end of our target range.  But, by my count it hasn’t completed the full extent of this sell-off.  Look for this rally to fail at around 1422.

The eminis, despite a great bounce off the .886 of the April – June correction, appears to have stalled at the bottom of the white channel.  And it did so without having reached its own harmonic target and without any positive divergence whatsoever.

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