In our previous post, we cautioned that today could be a day of 'window-dressing' with its attendant sloppiness as portfolios are reconfigured the end of the month. As you can see from the intraday chart below, that is what occurred at the beginning of the session.
|ES Futures - 5 min - Window Dressing Day|
Prices declined - during the cash session - from approximately 3,632 to about 3,592 in the first 90 minutes of the session. After that, there was an attempt to buy-back the highs in a likely front-running of the 'first-of-the-month' money which typically enters the market. As soon as the cash market closed, the buying became more serious and continued into the after-hours, so far.
Over the last couple sessions there was downward overlap, preventing a five-wave impulse out of the triangle, so the larger wave count depends significantly on whether a all-time-high is made or not.
Meanwhile, in terms of another market, according to The Eight Fold Path Methodology, today the US Dollar Index confirmed its fifth Minor wave, down, Minor 5, and needs to begin to be monitored closely for a turn.
|DX Futures - Daily - Five-Down|
In this count, wave 2 is a (w)-(x)-triangle (y), and wave 4 is a Flat. Wave 5 may be a diagonal or part of one.
Have a good start to the evening.