Market Indexes: Most Major U.S. Equity Indexes were lower; NDX, NQ +1
SPX Candle: Lower High, Lower Low, Lower Close - Trend Candle
FED Posture: Quantitative Tightening (QT)
ES futures prices remained inside the Long Candle from yesterday's post. Prices were higher overnight, then lower, then higher, then lower today. The theme should be becoming apparent by now.
At the close, the ES hourly futures had traced 62% of the Long Candle, and is trading in a downward parallel.
|ES Hourly Futures - 62% Retrace of Long Candle|
The parameters of either a diagonal or a triangle remain in tact. There would be nothing wrong with a 78% retrace, and still nothing wrong with more whippy price movement.
Once again, refer to the daily chart. Only if price gets below the low of the Long Candle would there be a warning that a diagonal or triangle count is not working. Remember, the purpose of triangles is to move price sideways and to 'waste time', so patience, and flexibility are needed now - most of all.
Have a good start to your evening.