The market barely moved today. It was range bound sunday night into Monday morning in an expanding a-b-c-d-e triangle that topped at 2056 — just below are cutoff line at 2057.
From there, it just consolidated pretty much between 2047 and 2052 for the whole day — in what appears to be a complex B-wave — ultimately, it resolved down towards 2045 — so the momentum is slightly in the bear’s hands. Now it depends on whether the bears drop the ball.
Still, to get a more convincing move to the downside, we need to break outside of the range that was generated from the expanding triangle — 2044-2056 — so breaking below 2043 would be important for further downside.
Despite the lack of market movement, the price action still stayed within the parallel channels. Given that waves 1 and 3 each took about 3 days — I would not be surprised if this continues through into Wednesday — assuming this parallel channel plays out.
Again – reminder that a 3-day weekend is coming up. In previous 3-day weekends, there was a bottom in place the Thursday or so before that weekend.
The Nasdaq made new highs over 4380 — ultimately resolved lower.
The Russell also made new highs towards 1117 — it wasn’t until the last hour that things started to shift down. Of the 3 indices, Russell has been the most bullish despite making new lows on May 19.