We got an almost text book A - B - C Wave Structure this morning, or a Three-Wave Correction formation.
The one negative in early morning trading was the Advance - Decline Line being below -1000.
This is an example where Market Structure will overrule other indicators. Between 1010 and 1040 ET, the $TICK indicator was not confirming lower lows in the futures and index. However, the market slumped to the downside anyway.
After 1000 ET the market indicated a slight change in upward momentum, which turned out to be the start of the B - C Wave. Unfortunately, reversals don't always come with a divergence.
Charles
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