Tuesday, March 6, 2018

How You Can Tell - 4

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)

There was not much new today. Prices, as measured by the S&P500 cash index, opened at a slightly higher high, and then traveled sideways to lower all morning and afternoon. All-in-all the S&P500 Index closed up about +7 points, and the DOW up about +9.

In terms of the daily chart, price is still living between these two daily trend lines.

S&P500 Cash - Daily - Between Trend Lines

We just note a couple of things: The Russell 2000 Futures had a relatively stronger day and actually breached the down-trend line shown. Secondly, the EMA-34 has gone as flat as a pancake. Third, the S&P500 cash stopped just short of retracing 61.8% of the recent down move from the end of February to the beginning of March.

The trend lines are still tentative. There's no magic here. We are still in The Fourth Wave Conundrum. Every one will ask, over & over again, "What's the count?", "Here's my count, is it right?" There is no telling without more waves.

Have a good evening. I wish you one with as little stress as possible. Remain patient, flexible and calm.