We have a 5-3-5 decline so far in the cash index from a topping structure (Chart 1). There appears to be less conviction by the bulls for the first time going into the close, evidenced by less vigorous short covering and heavy volume liquidation in the first few minutes of after-hour trading (Chart 2). Overnight action going into the first day of March is likely to be interesting.
[1150am] SPX update -
We have five wave down from the high. Let's see where it leads.
[850am] ES update -
topping, wedging
[830am] DAX update -
topping.
