Market Indexes: Major U.S. Equity Indexes closed higher
SPX Candle: Lower High, Higher Low, Higher Close - Inside Day
FED Posture: Quantitative Tightening Interim Patience (QTIP)
As the FED has sent all its messengers out to say how patient they can be, today resulted in an inside day - also requiring patience. The hourly chart of the S&P500 Cash Index is below.
|SP500 Cash Index - Hourly - Minute ((c)) Nears Equality|
One can see from the Fibonacci ruler that a minute ((c)) wave is now nearing equality with minute ((a)). One can also see that the tail end is wedging prominently and price is below the mid-line of the channel. Since the cash index did not form an over-lapping diagonal for minute ((a)), then it would be acceptable for minute ((c)) to have formed a diagonal in its entirety.
Did the diagonal fail, or will it continue? That is a good question. There is a way to count such a diagonal for either case, unfortunately. The waves are so compressed, they do not provide a good answer. Monday and Tuesday should bring some better information.
Have a good start to your evening.