Market Indexes: Major U.S. Equity Indexes closed lower; NAS/NDX higher
SPX Candle: Lower High, Lower Low, Lower Close - Doji Candle
FED Posture: Quantitative Tightening (QT)
After the run-up of the last few days, we had warned at the end of our post yesterday that "Pull-backs can occur at any time as part of a back-and-filling process", and that seems to be what today was for U.S. Equity markets. Here is the daily chart of the S&P500 Cash Index for reference.
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| S&P500 Cash Index - Daily - Consolidation Day |
The Elliott Wave Oscillator (EWO) still has green histogram bars and is still rising. Price momentum remains puckish, and the small nature of the pull-pack thus far is hard to argue with.
Crude Oil experienced the more significant losses, down over -$2.35 for the day.
So, keep a close eye on things, and have a very good start to your evening.
TraderJoe
hi Trader Joe- one general question on elliot wave...in a LD can the 5th be truncated that is it doesnt make a higher high compared to 3rd. thanks
ReplyDeleteHi Jack. No. In a leading diagonal, the fifth wave must 'always' be higher / lower than the third. (Only in 'ending' diagonals are the fifth waves allowed to truncate - and not very often at that. That is a key way to tell them apart.
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