Still in Limits

Market Outlook: Expecting Higher Volatility
Market Indexes: Most Major U.S. Equity Indexes were higher
SPX Candle: Higher High, Higher Low, Higher Close - Trend Candle
FED Posture: Quantitative Tightening (QT)

The market as measured by the Dow Jones Industrial Average, made a lower low this morning. The S&P500 did not. Let's show you the DJIA chart first. 

DJIA - Half Hour Chart - Lower Low Today

We were then able to count a small degree five waves up on the DOW and the ES E-Mini S&P500 Index futures. For this reason, and the trend line shown above, I also assigned this morning's low as the low of the C wave in the S&P500 Index, as well. Shown below.

S&P500 Cash Index - Truncated C wave within Triangle

Since we have "five waves up" from this C wave location, it is the only location that a third wave higher can proceed without breaking a 0 to 2, or A to B, trend line, and it also agrees with the wave count we showed last night. (Keep in mind, the five waves up could just be an A wave, up, too).

IF the upward sloping trend line breaks by more than a full candle tomorrow, the situation will be re-evaluated. Right now, it looks acceptable.

The choppy and whippy market behavior continues. A triangle or diagonal remains an excellent possibility. To see why, have another look at this daily chart of the NQ futures.

NQ Futures - Daily - Potential Triangle or Diagonal

Of the two right now, based on timing and structure, the triangle looks just a bit more likely, maybe waiting on the Congressional Tax Bill Reconciliation. But either is possible as long as the current (A) wave down does not break. We remain solidly in The Fourth Wave Conundrum, as referenced before.

Here is again, the ES daily chart, showing that the Long Bar remains in tact at the present time.

ES E-Mini S&P500 Index Futures - Daily - Long Bar Not Exceeded Lower Yet

Well, that's it for tonight. Have a very good start to your evening.
TraderJoe