Our Live Trading Rooms Bring Together Thousands of Traders from Around the World!
Good Friday Morning, MPTraders! October 9, 2026-- Pre-Market UpdateThe current cover of The Economist: Is it a contrarian's signal to buy bonds (in expectation of lower longer-term yields)?If I overlay my chartwork on The Economist's Bond "signal," YIELD will need to roll over and nose-dive beneath 4.75%-4.80% to trigger a serious trend reversal. Otherwise, weakness in YIELD will be considered a minor pullback in a dominant uptrend pattern that is destined to blow through 5.50% en route to 6.00%.
With the market pulling back even more today, the question asked in the title of this update has to be on the table at this time.As we have explained in the last two days, if we are dealing with a diagonal to the target overhead, then the 3rd wave came up short of the standard target. So, it clearly places into question whether this pullback is a wave 4 in that diagonal.However, should the market break down below the wave 2 (7700SPX) in that potential diagonal, then we completely invalidated that count as shown.
After moving lower yesterday, the market pushed back higher today, keeping the door open for further upside action and another push to new highs. Furthermore, today's move has invalidated the potential for a five-wave decline off the highs, making the possibility of a top in an expanded b wave less likely.Unfortunately, the overall pattern on the smaller timeframes remains quite messy. As Avi noted yesterday, the SPX does technically have enough waves in place to consider at least a local top, so we still need to remain cognizant of that possibility.
Our Technical Analysts Share Their Expertise 24/7 on a Vast Range of Markets!
