Gap and Lower Low Day

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

On Friday, we had written about the possibility of a contracting ending diagonal wave at the prior wave .b high, and we said than if Friday's low of the day was exceeded, it would likely mean the short term trend had reversed. Those conditions occurred today. Further, as selling accelerated into the close, pending news on tariffs, a gap was closed from last Thursday, shown as the last back circle on the daily S&P chart, below.

S&P500 Cash Index - Daily - Lower Low Day

The Elliott Wave Oscillator was still green and increasing, though it will likely go red, start declining and approach the zero line before the minute wave (iv) is over.

For those curious of the intraday chart, here is what things looked like. The cash market closed down about -16 points.

S&P500 Cash Index - Half-Hour Chart - Lower Lows and Lower Highs

One interesting note is that aside from filling the Thursday gap, prices extended down to make a 1.618 extension on wave -i already, and they certainly could go lower over time. The down movement is still quite choppy though, pending the news announcements.

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