It turns out 1940 did not hold as support – we went all the way down to 1927.75 overnight—which is still within the structure of the pattern. From there we rallied over 1950. I do have to say the B-wave downside pattern really likes funky (as do B-waves usually look) — but the rally is equally funky –so I’m little cautious watching the wave develop. That said, it does seem to be moving upward — just not what I am typically used to seeing.
If we don’t rally overnight, then there could be something wrong with the upside pattern. Would not be good for the upside if we stayed below 1930 all night into tomorrow.
I would say 1920 would be the line in the sand.
Remember the Russell? On January 20, 2016, we posted this chart in our blog entry: Wednesday, 01/20/16: So THIS is what a bottom looks like–geez!
The Russell futures eventually went as low as 938 –but we expected an eventual test of the 1050 region. Well, today the Russell Futures (TF) hit above 1040, though it closed below 1035.
Let’s see how the market reacts in the 1050-1060 range if it gets there.