We had the move up yesterday for Tiny Wave 2 inside Small Wave C down, which stopped just shy of the 10/6 high of 5808 that ended Small Wave B up and started Tiny Wave 1 down inside Small Wave C down. We hit 5806.75 into the close yesterday for Tiny Wave 2, and this is all setting up a large move after the CPI this Thursday.
I think it's down of course but it could be up too. I'll take my chances though as I just don't see the move up to 6000+ until we get a pullback first. We also have the minutes from last months FOMC today at 2pm EST, which might cause some movement? But usually nothing much is said new so I think the most important event to cause a big move is the CPI on Thursday Here's a chart...
What I'd like to see for today is a slow move down into the close that stops just above the horizontal support from yesterday to lure in some bulls looking for a break higher on after the CPI, but that might be wishful thinking, who knows? If the wave count is right though we should be starting Tiny Wave 3 down, and again, that might subdivide into 5 smaller waves.
So the perfect scenario would be down early in the day for Extra Tiny Wave 1 and and small bounce back up into the close for another lower high for Extra Tiny Wave 2 up. Maybe something like a move down to 5750 early and back up to 5800 later on. It would keep everyone guessing on the next direction as not many would see the bearish wave count. Will that play out? Who knows? We shall see.
Have a blessed day.
