The SPX Premarket is running higher this morning and the best Wave analysis I can give is that the Wave [ii] correction may not be over. This may comport with the FOMC meeting on Tuesday and Wednesday with a statement, but no press conference on Wednesday.

The trendline of the Broadening Top offered a support area for a bounce. The target for this retracement may be in the range of the 61.8% level at 2141.01 or as high as Intermediate-term resistance at 2147.58, which is also the 78.6% retracement level.

A break of the trendline and prior low at 2119.36 negates this analysis.

ZeroHedge comments, “Asian shares traded mixed, European shares slid while US equity futures posted a modest rebound after Friday's surprising political news that the FBI reopened its probe into Hillary Clinton, after OPEC failed to agree supply cuts at a meeting in Vienna.”

TNX is lower, but there is not enough movement to do a proper analysis. TNX may have one more probe higher today before making its decline, as Wave [v] does not appears complete.

Crude oil has broken beneath the 48.00 handle and may be an indicator of possible weakness in stocks. It has fallen beneath its Intermediate-term support at 48.14 and may threaten its 50-day Moving Average at 47.69 later today. If this gets out of hand, the SPX may break its supports also.

Regards,

Tony

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