Lower Low Day

After a bit of back and forth in the after-hours last night, U.S. equity prices as measured by the ES e-mini S&P futures began falling off in the overnight and made a lower low today. The cash SPY and SPX gapped lower. The daily ES chart is below.

ES Futures - Daily - Loss of Embedded Status

In the process of making the lower low, the daily slow stochastic lost it's embedded status. That means it is more likely than not that price and the 18-day average will try to come together at a minimum. 

From an Elliott Wave perpective - at the moment - there appear to be only three waves down and they are currently labeled a/i, b/ii, or c/iii. This was shown on the hourly intraday chart in the comments of the prior post. Both labelings are to be considered equivalent until further price movement separates them out by length as right now there is rough equality between the two down legs.

Have a good start to the evening,

TraderJoe