Market Indexes: Major U.S. Equity Indexes closed lower
SPX Candle: Lower High, Lower Low, Lower Close - Trend Candle
FED Posture: Quantitative Tightening (QT)
Although the cash market made a lower low day, there is still nothing to rule out the potential triangle count. Below is a chart of the daily ES E-Mini S&P500 Index futures.
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| ES E-Mini S&P500 Index Futures - Daily |
Although was a lower low day in cash, it is not lower than than the current (c) wave low - let alone the (a) wave low. This may eventually help to solidify the lower trend line of a potential triangle, but risk of invalidation (a.k.a. the Bottom Torture we wrote about on the weekend) remains somewhat elevated until a higher recent swing high over two days ago has been made.
Watch it closely and have a very good start to your evening.
TraderJoe
Hi Joe,
ReplyDeleteHope you are well. I'm a bit surprised you haven't made comment about the wild action the past 2 days. I would describe it as nothing short of " Mr. Toads Wild Ride" with repeated 100 to 200 point swings in the Dow within a few hours. I was wondering if what's been going on has implications beyond just volatility. I seem to remember hearing somewhere that this kind of action sometimes occurs at inflection points. I was just wondering what your thoughts were.
Hi P-T. I have said numerous times the whippy action is consistent with a potential triangle. There is not much more to say than that unless there is a price breakdown.
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