Still Nothing Preventing Wave Minuet (iv)

Market Outlook: Likely Long Term Top Identified
Market Indexes: Major U.S. Equity Indexes closed lower; DJUtil higher
SPX Candle: Lower High, Lower Low, Lower Close - Red Marubozu
FED Posture: Quantitative Tightening (QT)

After trying hard to break upwardly through the 2,520 resistance level, stock prices as measured by the S&P500 cash index gapped down and fell back today. They made a lower low, and began to display some of the 'post-pattern behavior' one would expect if the minuet (iv) wave count was correct. The Dow Jones Industrials were lower by some 660 points, and the S&P500 cash index by some 62 points.

S&P500 Cash - Daily - Minuet (iv) Likely Completed

Wave minuet (iv) is more involved and complicated than minuet (ii), although the shape is similar, and it takes considerably more time. Therefore, there is a minimum pattern of alternation shown.

Tomorrow are two significant pieces of information: 1) the employment report, and 2) a combined NY Times interview with FED chairs Powell, Yellen and Bernanke. Given all that, even though a lower low below minuet (iii) is expected, it could be bumpy as get all. A triangle for wave minuet (iv) is even a possibility, but so is a plain old impulse for wave minuet (v). It should be clear than if wave (v) = (i), then it would make a new low. But, it could go lower than that, too!

Best wishes for a good start to your evening.
TraderJoe