US equity prices, as measured by ES futures had an inside day today. This temporarily (at least) turns the swingline indicator up. With prices not making a new daily low today, the 18-day SMA rose up enough to cause prices to contact it as shown in the chart, below.
Meanwhile, a new up (green) fractal formed at the prior high, and the regular calculation of the daily slow stochastic lost its embedded status. The only day it can get it back is the next day (tomorrow) without going through the whole rebuilding process again. Because of the prior day's lower low and potential lower high, IF a follow-through down bar occurs tomorrow and there is a close below the 18-day SMA, it could start a trend lower. It hasn't happened yet, but we'll be on the lookout for it.
For the moment things are dead-neutral. From a wave count perspective, the downward count remains the expanded flat, while the upward count remains a potential expanded triangle. Again, keep an eye on the local technicals until the situation clears.
Have an excellent rest of the evening,
TraderJoe
I just noticed a beautiful expanding diag in Amd. Good study
ReplyDeletehttps://www.tradingview.com/x/szRaCk5P/
Pretty interesting! TJ.
DeleteVix is winding up in a consolidation after Friday's move. The fact that it didn't shrink back right away as it almost always does is a concern.
ReplyDeleteI noticed an extreme low/put call ratio for the IWM etf. On 12/19/25, over 2.3 million calls vs 153,000 puts. I'd take a bet against the bulls.
ReplyDelete