Pop Out of Diagonal / Wedge

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)

Yesterday, we showed you a chart of how a (b) wave of the larger potential triangle could have ended. Fueled by today's employment data, stocks retraced narrowly and held the lower (zigzag or...) diagonal trend line. Prices then spiked above the upper diagonal trend line, in what appears as a convincing end to a now nicely proportionate (b) wave.

Here's the updated chart of the 4-hr Dow futures.

DJIA Futures (YM) - 4 Hr - Likely End of (b) wave.

The up move is decently impulse. It cleared the prior ((x)) wave, and we would like to see a clear five-wave sequence before labeling an upward wave at this time. And, it would be more evidence for the two daily triangles if the (a) wave high was exceeded at some point.

Needless to say, both the larger triangle count - where yesterday is the (b) wave, and the smaller triangle count - where yesterday is the end of the minute ((e)) wave, are valid for the S&P500 cash index. The DOW is still in question, even though the example above was used just to illustrate the clean end to a wave.

It would be a sign a trouble if price failed a back-test of the wedge at some point. That's it for now. Perhaps there will be more on Saturday or Sunday.

Have a very good start to you weekend.
TraderJoe