Gap Lower Day and Rebound

Market Outlook: Expecting Higher Volatility
Market Indexes: Major U.S. Equity Indexes were lower; DJTrans, RUT futures higher
SPX Candle: Lower High, Lower Low, Lower Close - Hanging Man Candle
FED Posture: Quantitative Tightening (QT)

Most U.S. Equity Indexes (except the DJ Transports) made daily lower low candles, and then retraced much of their initial losses. The market as measured by the cash S&P 500 Index had closed yesterday at 2,751. With the futures lower overnight, the market gapped six points lower to open at 2,745 and continued trading lower down to 2,736 by the first half-hour of trading. With the all-time high (ATH), so far, at 2759, this was down -23 points from that level. The market then rebounded in three-waves 2,747 - 2,741 - 2751 to a 62% retracement, before beginning to fall off again slightly to 2,743, and then trading up to close at 2,747.

All-in-all, there is not too much to get excited about, yet. The ES futures really only just spent their first full day back inside the Bollinger Band, but the daily slow stochastic is still fully embedded. If the market gaps lower tomorrow, it might start a more countable downward sequence. If not, revisiting the highs is well within the realm of probability.

So far, the only larger waves we have are 2,759 (ATH) - 2,736 - 2,751 - ??

So we remain patient, and flexible until further clarity appears. Have a very good start to your evening.
TraderJoe