On Saturday the US attacked Iran, which logically is going to cause some volatility in the market. Oddly, I don't think it's going to cause another big drop like the drop into April. Of course we had a nice drop Sunday night in the futures when they opened from the Iran strike news, but it hit support around the 5950 zone and bounced from it.
Clearly this market is not ready to go down yet. As crazy as it sounds we are likely going to make new all time highs before this market has a good pullback. Too me, it's looking like it's going to rally into the 4th of the July, but I don't know the target. Nothing has changed from last week, even with the panic of the air strike.
Today, tomorrow or Wednesday all the bearishness should disappear. We might have already bottomed in the Sunday futures? Hard to say for sure as these "turn windows" are not exact but a general date range when the market bottomed at many times in the past. Meaning prior cycles overlaying the current mark line up and point to this Tuesday or Wednesday where a low of some kind should appear, and then after that the market goes up strongly.
That "low" might already be "in" and we will only have a higher low? When I look at the futures this morning they have completely shrugged off the bombing of Iran as not important. I can see a wave 1 up recovery from that gap down low and a wave 2 pullback in play this morning. I think we will go up today in a squeeze, which will be a wave 3 of some degree.
Have an blessed day.
