S&P 500 (Figure 2)
Commodities joined in the recovery following the 10:00 data. Three solid waves of upside formed on the 5 minute time frame throughout the morning and into mid-afternoon in the indexes as well as in silver, gold, and oil. The 5 minute 20 period moving average was initial resistance and the indexes hugged this zone to create a PhoenixTM buy setup on the 5 minute charts heading into 11:00 a.m. ET. A second correction of similar degree as the first formed between 11:45 a.m. and the 13:00 ET correction period, leading to a third wave of upside that took the market back into price congestion and resistance from the past several trading days (as shown on the 15 minute charts).
When the market has three wave of upside with corrections that are of a comparable length in time, it typically exhausts the trend and makes it more likely that a fourth attempt with fail. We saw this as the indexes attempted slightly higher highs in mid-afternoon, but overall they held the 15 minute resistance and were choppy into the closing bell.