Bonds have traced out the exact range I spelled out for you Friday. Watch for some resistance 138’31, especially as more news of riots diffuses into the markets. The Kovach Momentum Indicators have been largely neutral. We are still in a sideways Elliott Wave correction phase, and this will likely continue unless the markets are convinced we are back solidly back to risk on. This is not likely going to happen today or perhaps even this week due to the social unrest in the US that is infecting the rest of the world.
Looks like stocks tested both ends of our prediction from Friday. There were many ways you could have made $$$ off this! You could have traded the initial breakout with tight risk management either way (because of the respective vacuum zone on either side). Next you could have played both ranges (because of the strength of these levels on both the upside and downside).
As for today, I find it highly unlikely that we will be able to break out due to all the civil unrest in the US. We should at least test the lower levels like 3019 or 2991, first.
For more information, join our discord!