Market Indexes: Major U.S. Equity Indexes were higher; DJ Util lower
SPX Candle: Higher High, Higher Low, Higher Close - Trend Candle
FED Posture: Quantitative Tightening (QT)
We noted in the weekend video that the next target for Primary  was (5) = 0.618 x net [ (1) through (3) ] at 2,717. That target level was met today, and exceeded slightly, as per the monthly chart below.
|S&P500 Cash Index - Monthly - Target Attained|
Further we will note the presence of three monthly gaps in Intermediate (5). Usually, the "three-gap" sequence is first, an initiation gap, second, a continuation gap, and, third, and finally, an exhaustion gap. So, that pattern might make some sense here.
So, while this count is now 'plausible', it does not yet display the typical ending ending characteristics of either a large obvious triangle, or an ending diagonal. As I've said in yesterday's post, a contracting ending diagonal could be in progress. That did not change much today, except the relationship between potential c of (i), and a of (i) is now 0.618, and not 0.50 as it was yesterday. See the chart below.
|ES E-Mini S&P500 Index Futures - 4 Hr Chart - With c = 0.618 x a|
Although prices softened a tad at the tail end of the day, there still is not a high probability sign of a turn. Today's daily candle is still a trend candle, and until lower daily lows begin to be made we must continue to count with the trend upward. Tomorrow is the Employment Report which helps set FED policy, so it might be worthwhile to tune in a few times tomorrow to check on progress.
Because of the strong green histogram on the Elliott Wave Oscillator, the alternate for the above count is an impulse where a = .i, and b = .ii, and c = .iii, and then a potential wave .iv could not overlap a = .i. Let me further clarify, since there is already a wave after it, the Leading Diagonal a wave, (i), (ii), (iii), (iv), (v) can be either of a or .i. I have no preference, and we'll see what the employment report brings tomorrow.
Other than that, have a very good start to your evening!