Yellow Wave (3) or Green Wave IV?
With the decline today from the resistance we have been watching, the market is potentially set up to begin the wave (3) down. Ideal targets for yellow wave i of (3) is 1652ES (.382 extension), or as deep as 1633ES (.618 extension). That would mean that tomorrow must see VERY strong downside follow-through in the ideal scenario.
However, we also have a possible green iv we are watching, which would not likely break through the 1668-1672ES region based upon the current set up at the end of the day. Therefore, again, the 1668ES level is a key level to break for initial confirmation, but 1651ES is the major key we are watching.
Again, please remember that these are now on the DECEMBER CONTRACT!!!