The healthcare bill was put for a vote today and it passed.
Both the Dow and Russell made new lows and the S&P almost made new lows – but all indices did bounce and held the bounce in the afternoon.
In particular, the Russell formed a recognizable A-B-1-2-3-4-5 pattern (see diagram below).
The metals have been completely slaughtered. Silver has been down some 14 days pretty much in a row – I haven’t seen a continue selloff like this in a long time. Tomorrow’s 8:30am report should be the catalyst to market the lows. If not, then silver’s long term bullish pattern may be invaliding. So let’s see how the market reacts by the close tomorrow.
Given the high consolidation, I suspect one more high before turning back down. It looked like we were on our way up this morning – but we had a very large wave 2 that erased the entire wave 1. However, the market did bounce back – and is now sitting right below the 2386 ES market where there’s a lot of resistance.
Today’s healthcare vote was supposed to be a catalyst for the market to the upside – but in the morning we dropped it bit more than I expected. Right now it all depends on whether that 2386 ES level can be broken overnight. Failure to do so will turn this market down.
This was the prediction for S&P – looking for a gap fill to 2365 – but it never happened. Lowest was 2376 ES.
Seeing an A-B-1-2-3-4-5 pattern in the Russell into where the gap was 2 weekends ago at 1380 TF.
Matching the diagram below, the wave 2 would have that double top at 1410 TF level. While I didn’t expect the selloff to continue to make new lows today – I do see this pattern matching up into a gap support, so I think there should at least be a bounce.
With tomorrow’s 8:30 am report – I’m seeing possibility for one more low in gold.
Also seeing one more low in silver just before tomorrow’s 8:30 report
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