As the QQQQ's continue to weaken from the 39.82 level I've described a lot lately, even the S&P 500 (SPX) looks like it isn't certain it can make 1012/1014. We have reason to think it yet may, if this morning's weakness is a small 4th wave that paves the way for a small 5th wave up in an Elliott Wave sequence. I've got some reasons to think the SPX may be in a wedge up, and the dollar in a wedge down, with some movement starting for a turn. If I'm right this should become more apparent tomorrow. I know the FOMC is next week and that could provide some reason for the markets to try to wait it out, but we should see some more clues before then. Meantime, here are the candleglance chart views across markets where you can see even the recently-strong banks are struggling. Let me tell you that GS, despite its own strength, is running into more Fibonacci resistance, and the financials are among the most active already this morning which can often be a clue too. So far, the dollar is giving signs of being willing to spring higher.
Never any guarantees with the markets but what I've been pointing out for a long time, despite the fact that it has been taking a number of days for the picture to come into focus, is that a turn can still be in the works. And I'm sure this weekend will be a great time to review again what a turn might portend. We should have more indicators to work with from the action today and tomorrow too, which should help with that. Meantime - there might be reasons to look for some strengthening again in equities this afternoon, or at least some of the sectors; so just watch your levels and indicators for the specific sectors/stocks/ETFs you're involved with, intraday today.
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