The S&P now has created a clear lower high off the recent all time high of last week.
Just like the DOW,
the price gaped lower this morning.
And the price retraced that gap throughout the day to complete a three wave form off the low.
The price has not managed to fill the gap either this evening,
so this suggests very weak internal dynamics in the market right now.
After todays action,
I am leaning very heavily into full bearish mode!
Tomorrow we get the Fed funds rate,
they are expected to cut by 0.25%,
if they go by 0.5%,
that will be a bearish signal to traders.
And then on Friday we get the latest payroll data.
I expect it will be weak,
if so, we may move quickly into a third wave down and break support at 2958 this week.
Watch for this lower high to hold
and a further decline back below 3000 to begin wave (iii) down.
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