Squawk Evening Update: Nothing to See Here

Markets continued to chop in a “wait and see” hesitation mode on Wednesday.  Sometimes this sort of chop, and the wave structure it contains’ adds critical information to inform our wave count.  In this case, it did not.  And since there’s little information in the internal structure, and we were in an uncertain place to begin with, it is likely that we’ll be left with little new to say tomorrow morning unless there are dramatic moves in overnight futures or forex markets.

In the absence of useful guidance, we’ll look for something instructive to say about some of the wave patterns we’re observing and see if there’s additional preparation we can do for when things become clearer.  However, we’ll shy away from inventing too much to say and reserve our efforts to staying on top of markets when there is useful movement deserving of comment.

Probably the most notable thing that happened today, or didn’t happen today, is that equity markets again failed just below the failed new high into Tuesday’s close.  That in turn is also below the magic 1129 line we have had our eye on.  Pops upward, while violent, are shying away from these levels and at some point should either break through them decisively or fall decisively.  The behavior of the markets near these levels is an indication that they are aware of the importance attached to prints above 1129, but are not yet prepared to be forthcoming about which side is favored.

We’ll have a bit more about the action at this level tomorrow morning.  Hopefully you’ll have an enjoyable and restful evening.  At some point markets will be active again and produce good opportunities for trading informed by Elliott Wave analysis and we’ll all want to be ready.