Market Outlook: Now Getting Higher Volatility
Market Indexes: Major U.S. Equity Indexes closed higher
SPX Candle: Higher High, Higher Low, Higher Close - Trend Candle
FED Posture: Quantitative Tightening (QT)
Today added some evidence to the still potential triangle count in the S&P500 Cash Index, with the higher high candle. By no means, is it a done deal.
Prices, as measured by the S&P500 Cash Index, had closed Friday at 2,691.25. The futures initially gapped down about -13 points on Sunday night, then traded high enough to close the gap down open, and then turned lower for Monday's opening. As a result, the cash market opened down around -10 points to open at 2,681 and traded lower yet to 2,675 and stopped there - all the while respecting an up trend line from Friday's low.
Then, around 10:30 am ET, the market turned around and traded higher once again, breaking Friday's high. Although close, they did not break Thursday's high, and closed at 2,721, up about +30 points.
Additional follow-through to the upside is needed for the deep triangle count. A break of the daily downtrend line from the highs would further support the "DEEP TRIANGLE" count presented Sunday, or something more bullish higher. A break of the daily uptrend line from the 09 Feb low, would be more evidence for the "SHALLOW TRIANGLE" count, or something worse to the down side.
Have a good evening.