Market Indexes: Major U.S. Equity Indexes closed higher; $RUT, $DJUtil, lower
SPX Candle: Higher High, Higher Low, Higher Close - Trend Candle
FED Posture: Quantitative Tightening (QT)
It's quite difficult to decide what to make of today's virtually "mirror image" candle to yesterday. From the daily chart below, one can primarily only say that price did not make a higher high than Wednesday, and, after a gap up open, it failed at the EMA-34.
The daily chart of the S&P500 cash index is below.
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| S&P500 Cash Index - Daily - Mirror Image Candle |
The second of yesterday's counts has not technically invalidated, but we will have to evaluate the "right look" of the count if a lower low is made. Today's volume was fairly light pre-holiday style. So, it is not wise to put too much into one day's bar.
From a fractal perspective, Wednesday's high is a true "up" fractal: it has two lower-high candles on either side of it. Monday's low is the last valid down fractal (with two higher low candles on either side of it), but it has already been slightly exceeded lower. So, exceeding Wednesday's high would be of some significance. (Yesterday's candle needs another higher low candle to the right to become a valid down fractal.)
The Dow Jones Industrial Average now has a longer wave downward than it's mid-April to beginning of May wave downward. That means it could be a longer (e) wave of the larger triangle at this location. And that remains an alternate for the S&P500, too.
That's it for tonight. Perhaps there will be more on the weekend.
TraderJoe
Joe, I think today's rally completed an abc (running) flat that began at Monday's 2699 low. I think it invalidated the EDT possibility.
ReplyDeleteBut the teeth of the alligator is at 2759 just above Wednesday's fractal 2746. AO below the zero and falling and AC has 1 blue bar below the zero line. I think at this point need to wait till we are back over the teeth of the alligator with a AO above zero line.
ReplyDelete