Wave chart at 10:30 am

Here is the e-mini wave chart for yesterday's and today's day sessions. It is clearly bearish. Not only is there an obvious sequence of lower lows and lower highs, but the latest down wave was longer than the preceding down wave and the last up wave was shorter than the up wave that preceded it. Moreover the highest volume bar of the past two days occurred as a down bar on the latest down wave.

Resistance is at the midpoint of this morning's rally, roughly 862 (dotted purple line). That rally was about 9 points in length (first blue rectangle) and a rally from the current low at 853.25 of that length (second blue rectangle ) would also carry the market to 862.

However, if this market is as weak as I think it is I don't think we'll see a rally as big as even 8 points until the e-minis drop to 845 or so.