Yesterday, I posted the below chart suggesting a rally over night for S&P E-mini futures. Indeed, we hit 1946 overnight, but in the morning – any retest could only get as high as 1943.
Well, we did get a rally overnight — but the 3 only went to 1946 — I was expecting a little bit more towards 1950-1955 , but market was on the weaker side. The big clue I saw and should have acted on – was when I see the corrective 2 that then broken down. That usually signifies a 3 wave down.
The big A-B-C flat in December could signify that the overnight rally was a wave IV – and we are in V down. Since the size of that FLAT was pretty big, there should be more downside.