Stocks pushed lower overnight, getting a lift from 2940. We have breached the psychologically and technically important 3000 level. Based on the Elliott Wave, we are still in a ‘reasonable’ correction for an overall bullish move, but today seems pivotal. If we break current levels, we could retrace the entire move from May, and this would constitute a bear market. Watch for markets to either range, digesting news, or rally again if the Fed steps in or risk on sentiment picks up. Watch 2940 and 2871, if more risk off sentiment pours in.
SPY will likely gap down this morning, tracking ES futures from the overnight session. The Elliott Wave suggests we are still in a bull cycle, but if risk off sentiment persists, a bear market could be confirmed soon. Watch $293.84 and $287.14 for support.