Remark on Futures

Futures are up so far, so how would we want to account for this?

We know, given the length of the rally, that it most certainly should be nearing a significant pullback soon, at the very least.

We have a jobs report this morning, so a big gap down is still possible. If we don’t get that, but open higher anyways, so long as it’s not too high, we can still be in the little orange 2 from yesterday, like this (green arrow):

SPX

If this is so, we would expect a gap and crap. If we just fail to sell off, and remain sort of elevated, I would have to think that we’ve still got one more high to make, and the only way I can seem to account for that would be something like this:

SPX

The target above (4339.54) comes from the wave balance discussed here. This isn’t ideal, as I do not immediately see wave balance within the blue 4 (and the orange 1—of the blue 3—to our left looks really weird), but there may be some slight variation of this count where balance does exist. Or, the blue 4 is going to become a little more complex, perhaps a triangle, burning off everyone’s options into next week.


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