Triangle Completion

Market Outlook: A Fourth Wave Triangle in Minor 3 Completed Today
Market Indexes: Most major U.S. Equity Indexes were higher, except RUT
SPX Candle: Higher High, Higher Low, Higher Close : Trend Candle
FED Posture: Quantitative Tightening (QT)

The market - as measured by the S&P500 cash Index - opened slightly higher and immediately traded slightly lower to fully complete the triangle we suggested was possible yesterday. The running triangle was validated as the (e) wave was below the high of the prior wave 3 but above the prior wave (c). And the purpose of the triangle was to waste time until the FOMC meeting minutes were released.

SP500 Cash 30-Minute Chart - Triangle Completion

After prices left the triangle, they jerked steadily higher. The cash market did not make a new all-time high before the end of the session, but the futures did. I expect cash might make the new high tomorrow. The futures volume was exceptionally low at only 796k contracts, and may be the lowest non-holiday trading volume of the year!

Once this wave wraps up I'll try to put it in a larger context for easier understanding. However, now that a triangle has been validated, it becomes more likely that if prices trade below 2540, it would mark a turn point of a certain degree. And - just a reminder - all of the open gaps are below the market at this point in time, and a triangle often represents the last wave in a particular sequence. But, what should bother the outright bears a tad is this is another running triangle, at the top of the market, and running triangles, with their higher (b) waves still have bullish implications. I'll try to explain more later.

For now, have a very good start to your evening!
TraderJoe