Level

Futures have made a three-wave decline in the pre-market, regardless of Janet may have said or not said at her first public appearance as Fed chairman. So it looks like ES 1804.50, its overnight high, could be exceeded in the day session. Whether the cash S&P confirms this remains to be seen, but there are viable targets. 1807.70 is the 61.8% level, 1809 is the 50-day moving average, and 1815.52 is the low of the first down leg from the high. 1815 also would begin to form a right shoulder area, so it may be an important level.

Closing above 1798.77 was important. It allows the S&P to keep up with the NASDAQ however briefly. But as long as the S&P remains below its all-time highs, there is still the possibility of another more vicious decline. That's because the market's function is to keep us guessing all the time.

Jack White and the rest of the Raconteurs would approve.