The current pullback in S&P futures appears as likely to give us upside targets as it is to morph into a bearish impulse wave. Yesterday we were looking for at least a 30% retracement of last week’s strong up-move, and we got more than we asked for. With nearly 70% of the gains given back, the current low of 1238.75 will probably have to hold if we’re going to get actionable bullish targets out of this pattern, which would be confirmed by a print at 1257.00. A further decline to below 1216.50 would yield a bearish impulse wave for which there is a ready-made one-off “A”, as depicted in the attachment. The decline accelerated around 2:00pm yesterday, and thus far it hasn’t given us any structure to work with. (Posted by Doug “harry” McLagan)
