Catfish or bottom feeders. After the five-wave diagonal we counted downward in near real time, the market tried to mount a rally to the prior 38% high we pointed out yesterday. For the time being at least, it double topped there at 07:00 EST.
Intraday, we counted out a diagonal, and looked for clues from it. It did break lower but it took a lot of time to do it.
Towards the settlement, in whippy behavior the futures market again made a dive for the lows resembling bottom-feeding fish. While the low did not break by settlement, it could, if it wants in the after-hours tonight or Sunday. All-in-all, most will just see it as a poor close, and perhaps people just leaving the market in advance of the holiday week.
Cash SPX is not showing much, if any at all, of repeated retesting of the bottoms. That is sure interesting - more invisible waves.
The larger count remains as it was yesterday, until this smaller pattern is resolved.
Have a good start to the weekend,