The S&P fell into the 4th of July weekend as expected, with one exception. The move down was not a 5-wave pattern, but a 3-wave pattern. If this analysis is correct, it leads me to believe that we will be bouncing in the 1000 to 1100 range for the next two months.
The real play will be a break of the light blue trendlines.
On a shorter term scale, we could have finished today, but I am hesitant. When looking back at the last upward move, I see a possible repeating fractal. If it is a fractal, we will probably see a gap and crap on Friday, which will signal the next move down.
The multi-month move in the S&P futures definitely tells us that we are at a decision point. The next couple of days are very important if upward momentum is to be maintained. I have placed my bets that it wont be. North of 1100 and I am very wrong.
Gold definitely broke down as expected. I expect $1100 an ounce in very short order.
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