Lower high, Lower low, Higher close

Market Outlook: Continuing in Minor 4, Lower
Market Indexes: S&P500, Russell, NDX, Tran were Higher; DJIA Lower.

Stocks as measured by the S&P500 closed at 2443 on Friday. Stock Index Futures were initially lower on Sunday night, then swung higher in the morning. The cash market opened with a gap and rallied to 2449.  Then, as with many recent days, the opening gap was sold off and closed roughly within the first hour, trading down to 2439 by 12:30 pm ET, which filled the gap up open from 25 Aug.

Prices then rallied to 2443, in a slow slog sideways until the close, in what looked to be a corrective pattern, finishing at 2444, one point higher than they closed on Friday.

Here is the S&P500 Daily chart. As the moving averages begin to gain separation, prices overall had a lower high, lower low, higher close candle, more-or-less trapped within the moving averages.

S&P500 Daily Chart

Both of the previous counts we were working on remain on the table. They are minute ((a)) down and now in triangle ((b)) of Minor 4; or minuet (i) down, minuet (ii), up, and now in minuet (iii), down, of minute ((a)), down, of Minor 4. IF we are in the latter count, since today ended with a corrective sequence, upward, then there should be increased downward momentum tomorrow.

There was more declining volume than advancing volume today, and declining issues on the NYSE were ahead of advancing issues. There were more new 52-week highs than lows today in a day with very light volume overall.

Again, take it slow. Be flexible, and keep an eye on things - even if on vacation or thinking of it . A good way to make sure there is less participation in a corrective move is to do it when most people have other things on their mind.

Cheers and have a good start to your evening.
TraderJoe