Narrow Consolidation Day

Market Outlook: Now Getting Higher Volatility  
Market Indexes: Major U.S. Equity Indexes closed higher; DJTrans, DJUtil lower
SPX Candle: Higher High, Higher Low, Higher Close -  Trend Candle
FED Posture: Quantitative Tightening (QT)

Today was a narrow range consolidation day, after the recent market days that gapped up. We had warned "that there could be backing and filling at any time". That's apparently what we got today.

The market, as measured by the cash S&P500 Index, had closed yesterday at 2,897, and at the open, the market gapped up in it's first foray over the 2,900 level to 2,901. This high, as best we can tell is the high of an internal sub-wave three still of sub-minuet wave .iii on the daily chart, which is below for reference. Then prices dropped to 2,893 by around 12:30 pm, and traded up to close at 2,897 again.

S&P500 Cash Index - Daily - Higher High Day

Since today's low was likely then the fourth sub-wave within that sub-minuet wave .iii, we would still expect to see new highs within wave .iii. This could happen fairly quickly - within the next day or so. Then a somewhat larger pull-back would occur for the sub-minuet .ivth wave, before completing minuet v, within minute (iii).

With today's higher high, sub-minuet wave .iii became longer in price than sub-minuet wave .i within minuet wave v. And according to our count, it still has a little ways to go. The Elliott Wave Oscillator remains green, above the zero line and rising.

While the exercise continues to be to attempt to count the waves to a top, my market outlook is shifting from neutral to cautious. I am not bullish. I am neutral and wary of a top. (This is not to be taken as trading or investment advice. It is only a sign that most of the countable waves to a top are in place. Not all of them but many of them.) 

Have a very good start to your evening. 
TraderJoe