Market Indexes: Major U.S. Equity Indexes closed lower
SPX Candle: Lower High, Lower Low, Lower Close - Trend Candle
FED Posture: Quantitative Tightening (QT)
Yesterday's three waves down as ((A)), ((B)), ((C)) converted to ((1)), ((2)), ((3)) down, as today there were a lower series of lows. Not to worry, we had warned readers and commenters, not to begin any up count until or unless the high of ((B)), now ((2)), was exceeded higher. It wasn't.
Here is the S&P500 15-minute cash chart, so you can follow along.
|S&P500 Cash Index - Fifteen Minute - Impulse|
With the first new low, we were able to rearrange yesterday's potential barrier triangle, to a "running triangle" preserving the proper degree labeling on the chart. This allowed (5) < (3) < (1).
We also gave instructions for re-drawing the potential down trend line from the FLAT wave ((2)) to the new wave ((4)) high that occurred today. As a result, there was excellent alternation with a long in time wave ((2)) flat, and a short in time wave ((4)) sharp. Then, there was another lower low, and it appears to be a fifth wave at approximately ((5)) = ((1)).
Looking at the EWO signature on the 15-minute chart, then currently you have (3) of ((3)) on the low of the EWO, ((3)) on last night's and today's continuing divergence, and ((4)) above the zero line. And now five down ((5)) would be on another divergence.
Sounds like The Eight Fold Path Method to the tee. As of this time ((5)) = ((1)).
The key to the count was uncovering the running triangle or else a) the wave degrees would not have worked out properly, and b) the implications of a "running triangle" with a lower B wave are bearish. And it projected today's lower low.
Prices have not broken 2,700 yet, and there are now several possible counts depending on whether that is broken or not. We'll have to simply reserve judgement until that does or does not occur. To avoid some questions the biggest possibilities are:
- We have seen the top of minute ((ii)); and this is the first impulse down; need to break 2,700 for that.
- We have seen only the c wave of a larger ((B)) wave flat, and (c) of minute ((ii)) up is yet to come; need to hold above 2700 for that.
- A retracement occurs and fails, and we go back to the 2,600 lows as a FLAT. Then a final (c) wave up of minute ((ii)).
Have good evening,