S&P Futures reversed nicely higher on Friday from 1737 where we see a completed wave (c), third leg of a decline from 1773 which was an expanded flat formation. As such, we think that price is now back in bullish mode that could reach 1780 – 1800 in the next few days.
Oil is at the lows, so obviously corrective bounce has unfolded sooner that we thought. Now when we are looking at the whole wave structure from the past 30 days we see prices moving down in wave 5 that could be targeting 90-91 region in the next few sessions. Once this zone is meet be aware of a corrective bounce.
GOLD has extended its decline in the last few sessions to 1260, but we still see it moving lower in wave v of i) which means that market could find a support soon and ideally it will reverse back up to 1305-1326 with wave ii). In that zone wave iv could react as a resistance and send prices lower again.