Warning Line Crossed - 2

Yesterday, we clearly indicated that a warning line for a downward ((i)), ((ii)), (i), (ii) had been crossed, invalidating the second (i), (ii). (See yesterday's S&P500 cash chart). Today saw additional gains.

On the daily chart, below, these overall factors can be cited. There is still a declining tops line in place from the June high.

ES Futures - Daily - Declining Tops

Although there are still declining tops, the swing line turned neutral - as best I can tell - with a lower low but a higher high. Price, meanwhile traveled back to the 18-day SMA, or "the line in the sand" at the 3,100 level, where the "battle is being fought", and then fell off a bit.

There are two clear down fractals, and two clear up fractals - breaking any of those might help define things a bit. The daily slow stochastic is dead sideways.

As we said before, the Minor B wave can take almost any corrective form: zigzag, multiple zigzag, flat, combination or triangle. Is it 'possible' this is a triangle? It certainly is possible, but there must be many more overlaps of A for that to occur properly.

Yes, it's difficult to deal with a sideways market. Today is the last day of the month and of the quarter. Tomorrow may see the usual inflows from mutual funds, 401k's, pension plans, company bonuses and dividend roll-overs. We'll see.

Have a good start to the evening.

TraderJoe