The chart below of the cash SPY shows that it (and the SPX) "went marginally over the top". Since they clearly made the 90% retrace level, they qualified for the Minute ((b)) wave that has been discussed for several days now. We said we could not call them "b" waves until they reached that 90% level, and here they are - and then some.
|SPY - 30 Min - Minute ((b))|
Today's up movement filled that cash gap at the 287 level shown by the black dashed line. However, there are now two open gaps below the current price - as shown by the red circles. The higher high occurred on a divergence with the EWO, and the day ended with a reversal candle. As typical, a confirming significant lower close candle in the cash market would be needed to better confirm the activation of the pattern.
Note that the up wave took a longer time to reach the new high than the down wave took to form. Also note that the futures have not (as yet) eeked out a new high. There would be nothing wrong if they did.
Also, note on the daily chart that the ES slow stochastic is now back up above 80 at just the "over-bought" level, as it is not embedded. But, price bias is higher, and price is not up to a daily upper Bollinger Band.
Blog readers are encouraged to draw the relevant up trend lines and monitor the situation to see if price breaks below them, and back-tests. The location of minute wave ((c)) can not be precisely located at this time, but it may be expected to travel below minute ((a)), even well below it - if price chooses.
But let's take one thing at a time and see if confirmation of a move lower begins to occur.
Have an excellent start to your evening.