The chart on the left has OHLC bars and the chart on the right just using closing levels. From an EWP standpoint, the sub-components of Minor wave 1 make more sense when analyzed on a closing bases (right chart). But normally, I want to use OHLC bars to analyze wave counts so I'm tracking the short term action on OHLC bars (left).
The market declined as expected on Friday after the jobs numbers came out. The sharp rally in the last few minutes of trading Friday was most likely short covering from folks who did not want to stay short over a long weekend. But I highly doubt it was any meaningful buying . As a result, selling should resume, and do so heavily, on Monday. Because of that, I used the late rally Friday afternoon to get more short. The wave count shows the S&P futures in a wave (iii) of 3 right now which means heavy relentless selling should rule the day in the foreseeable future.
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.