Today is the day for the bulls to attempt to put in a bottom. They must take out the 3/4 and 3/5 prior highs, which is the 5880-5900 zone basically. I thought we might see that happen last week with a squeeze after the NFP Report but it didn't happen. Instead we dropped lower into a midday new low Friday before recovering some in a late day rally.
If that was an A wave then the sideways to slightly down pullback into the close would be the start of the B wave. Next we should see a C wave up, that that should be today, which is the bearish case and the entire ABC would be a wave 4 I believe, and that would leave a wave 5 down to the 5560-5580 zone still to come into the end of this week.
This is my lean as I just don't think the bulls can take out the overhead horizontal resistance today. If they can then we'd be starting a 5 wave rally up (larger wave 1), not an ABC corrective wave 4, but I don't think that's the case. My "best guess" is that we finish the ABC up for a wave 4 today, start wave 1 down of the final 5th wave into tomorrow.
Bounce back up some for the wave 2 by the close Tuesday, and then the CPI comes out Wednesday morning and we see the start of the wave 3 down inside wave 5, which should complete the wave 4 and 5 to end that larger wave 5 by this Friday. That entire 5 wave move down from the all time high will then complete a larger A wave.
Have a blessed day.
