Oil Futures Form Familiar Basing Pattern

UPDATE

Interest Rates Pullback Towards Last Week's Lows

Stock Indices Near Elliot Wave Targets

Typically once large motive moves end in a 5th wave, the first obvious target is reversal in the opposite direction into the vicinity of the previous fourth wave. In this case, ES (e-mini S&P futures) and YM (e-mini Dow futures) had both completed 5-wave declines at the end of October. Now almost two weeks later both are already nearing their obvious first targets (ES = 4430 and Dow futs = 34,305). Typically, 5 wave moves are followed by 3-wave corrections, but it appears to be only one move off the lows so the recent advance should have plenty of room to go according to current wave count. Also, as pointed out in the previous post this morning, NQ futures have broken key resistance.

Key Trendline Under Pressure

A key the trendline is being pressured as of this writing. The December (Z) contract daily chart of NQ futures depicts a 3-month falling trendline that intersects the previous 4 rejections going back to August. The critical point lies at 15,230, which is the exact price heading into the New York open 9:30 EST. This is the second consecutive day in which price-action has tested this key resistance and thus far today is threatening to breakout on a hourly (chart) basis. Thus, if the equity open is positive it will highlight a strong indication that the tech-heavy NQ futures is breaking out, which quickly open the 15.3 region that houses the 100-day MA & a key 50% retracement.

UPDATE

UPDATE

UPDATE