Squawk Evening Update: Today Was About FibGrid

This morning we said to watch behavior at the FibGrid 2002 snow line to see the DJIA’s direction for the day.  While the opening gap down below the grid line seemed like it would break down.  However, the gravitational pull of the FibGrid was strong and it quickly pulled prices back where they oscillated above and below all day without establishing support or resistance to use as a spring board to break away in either direction.  Trapped, we chopped all day and ended up five points and just eleven points above the snow line.

We’ll have a few additional things to say about possible wave counts in the DJIA tomorrow.  However, none of those counts materially change our outlook.

The Euro broke below the first swing low we referenced this morning in a move that felt relatively swift compared to the choppy motion in equities.  It, was also caught up by FibGrid, as it stopped its decline right at its own snow line.  Unfortunately for the bears, the grid snared the Euro when it had only put in three waves down.  That means that both directions are still available to the Euro right now.  We’ll have counts and updated outlook tomorrow morning.