Market Indexes: Major U.S. Equity Indexes Higher, except DJ Trans & Utilities
SPX Candle: Higher High, Higher Low, Higher Close : Trend Candle
FED Posture: Quantitative Tightening (QT)
Prices leapt up above the channel we showed yesterday on news the House had finally passed a budget proposal. The Senate would still need to of course. After reviewing all the possibilities, it looks best like a fifth wave extension as shown below.
|S&P500 Cash - Half Hour Chart|
I could only count yesterday's wave as a "running second wave", and today's gap up as being in a third wave position. As you can see from the chart, there is no significant sign of a downward wave for wave 4 yet, so the uptrend may still have a little bit to go. It's possible that wave 4 will be a triangle to alternate with the flat wave 2.
This seems to agree with the NQ count - which looks like the clearest count of all - as a diagonal in the chart below.
|NQ Futures Daily - Over Top of Potential Diagonal|
As best we can tell, we are still in wave iii of (v) of that count, as well. Remember, in a diagonal wave (v) can not become longer than wave (iii), so, we'll see if that measurement holds.
For now, have a very good start to your evening.