Here's where the markets were sitting at the end of our conversation Mon morning:
60min 11:15am
Larger pattern continues to be supported by long purple s/r zone, watching for break. Significant technicals holding the market from above could have the pattern as a channel or contracting wedge. Another wave, or wave " e" of a potential abcde could take the market to the Fib level or significant technicals above the market. If this is the proper count, then we would expect the beginning of a new structure or wave down, confirmed by the breaking of the purple s/r zone.
TUES MORNING 7:45am
Since our talk on Mon. the market fell off in to a HPTZ, found support and lifted back to previous Fib retracement level, coming just short of of other significant resistances. Falling off again the market hits a long term 4hr HPTZ placed last week.
Continue to watch purple s/r zone for a break - current bias. This could lead to significant drops.
IF supports hold, we are then watching for a break of upper resistance, pattern / channel break.
The larger pattern is likely coming to a close soon, watching for signs of this and clues for what the next pattern is to be, AT this point it is likely to be an impulsive 5 down count.
240 and Daily below show support on purple s.r zone that needs to be broken. A down would continue the expanding wedge on the 240, and the channel on the daily.
240
Daily
