Yesterdays drop caught me a little off guard as I wasn't expecting such a large down day. However, it's fits perfect with a C wave down to end an ABC pattern down the high last week. Now it's time to start another series of wave, only up this time. But here's the big question... will the next series be able to take out the high from May 17th or fail and make a lower high?
If that entire series of waves down to the low yesterday was a B wave and the May 13th rally up an A wave, then we should be starting a C wave now that should target 2900-2920, or even a double top. This assumes the May 1st move down to the May 13th low was an A as covered on yesterdays morning update. Today I don't expect much action at all. The volume will get ever lighter throughout the day as traders leave early for the 3 day holiday weekend.
Remember that Monday is Memorial Day and the markets will be closed. Therefore I don't expect much action today. We could open up and just trade sideways all day long, right into the close. I'd be really shocked if we took another large drop hear. It's just not the way the elite like to play their games. A slow grind higher or sideways is most likely in my humble opinion. I'll end it here and just wish you all a happy holiday weekend. May God Bless you.