Futures are set to open down a little this morning. It looks like a continuation of the late day pullback on Friday. If I continue with the Elliottwave count that I discussed several times last week I'd say this is a tiny wave 4 down inside a small C wave up. If this count is correct then it should turn back up at some point today for the tiny wave 5 up. It should end tomorrow and complete the small C wave up, which also ends the medium wave 2 up inside large C wave down. Basically, (again... if this wave count is correct?) after Tuesdays last high the market should drop hard the rest of the week in a nasty medium wave 3 down inside a large C wave down.
However, there are of course things that can make this wave count incorrect. If we take out the high on Friday by more then just a small pierce I'd say the count is wrong and the market could (should) go much higher. I'm looking for a this tiny wave 5 up to end around a double top area from Friday, so it should be a weak move, not a strong one that takes out that high and squeezes up the current all time high. No, this tiny wave 5 up that is expected to end tomorrow should be weak.
If we get it, and today's wave 4 doesn't go much lower then the current premarket low, then odds are good for this to play out. Ideally, we want to see the wave 5 up start late today to put in a small green close, and then continue tomorrow into the end of the day Tuesday. I'm going to keep this update short and end it here as most of this has already been covered last week. Anything other then this scenario happening will of course kill the wave structure and put us back at square one trying to figure it out again. Have a great day.
