S&P500, NASDAQ 100 and Russell Futures new Historic Highs

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

We said on our Friday post, "With today's gap up, and follow-through, we think it signals the start of wave sub-minuet .iii of minuet v of minute (iii) within the Minor 5th wave. If so, the upper channel boundary should be the first price target. A wave .iii needs to get enough distance in it so that a wave .iv does not overlap wave .i. "

Today provided all the more evidence for that view, with a gap up, follow-through and overall +22 point gain for the market as measured by the S&P500 cash index. Here is the daily chart for reference.

S&P500 Cash Index - Daily - Gap Up

The gaps and near vertical nature of the rise likely indicate the third wave character. The Elliott Wave Oscillator is still green, above zero, and rising. An eventual target of the upper Elliott parallel trend channel remains in place for wave (iii). There can be backing and filling at any time. We indicated that wave .ii of this wave v of minute (iii) should not travel below wave .e of the wave iv triangle. It did not. We do not yet conclude that it is over for upward price action, although backing-and-filling can occur at any time. When a wave .iv of v of (iii) begins, it should not overlap it's wave .i.

Today, the Dow Jones Industrial Average entered an important downward price gap area from it's February 1 close to it's February 2 open. The expectation is that the gap will be filled.

Have a very good start to your evening, and to your week.
TraderJoe