Lower Low Day

In case you weren't able to follow all of yesterday's intraday comments, we may have been able to rescue the Minor 2 label at this level. First, here is the daily chart of the S&P500 cash index.

S&P500 Cash Index - Daily - Does ((c)) = ((a)) in Time?

On a two-hourly chart, we showed that from a time perspective, wave ((c)) could equal wave ((a)) in time two within two bars! That was quite astounding. We are showing it above on the daily chart.

Next, using the following chart, we were able to count five waves for a minute ((c)) wave as follows.

S&P500 Cash Index - Hourly - Minute ((c)) Completed?

It turns out in this count, all of the sub-waves of minute ((c)) are smaller than minute ((a)). So, degree labeling is adhered to in that regard. Further, within minute ((c)), when counted in this manner, each of minuet (ii), and minuet (iv) are shorter in price than the minute ((b)) wave. And, so, degree labeling is adhered to in that regard, as well.

With today's downward movement there was at least an overlap on wave minuet (iii) of ((c)). We just note that so that it prevents calling minuet (iii) as minuet (i), instead, and this down wave as minuet (iv), because that count would not be allowed by the overlap rules.

Further, today was a true "outside day down" in the daily ES E-Mini S&P500 Index futures. We have not seen one of those in quite a while, and it was maintained into the close. So, there is some level of evidence the downside is being temporarily favored here. Further indications would be a gap down day tomorrow, and lower histogram bars on the Fisher Transform indicator. We are not quite there yet, so patience, flexibility and calm are still required.

Have a good start to the evening.

TraderJoe