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Stocks rallied yesterday, which has been technically expected as we see E-mini SP500 futures moving down into fifth wave of decline with a wedge shape. This pattern was broken to the upside, so market is now in a three wave corrective bounce. It’s a temporary recovery that can be slowed down at 2755-2770 area, but after visible a-b-c sub-waves.

E-mini S&P500 1h

intraday sp

If stocks would really see limited upside then something similar can be happening for EURJPY, which appears to be in a more complex recovery, but still corrective. I am observing an A-B-C move back to 129.40/60 area where new sell-off may show up.

EURJPY 1h

intraday eurjpy