ES finished off a clean 5 wave structure during globex. That was as exciting as it got. We finished correcting that upmove around 10:15 CST. The majority of the day saw a slow grinding, what appears to have been, an ending diagonal to complete a C up. They sold the last hour.

The total range on the day was a measly 10.75 points. Volume contracted sharply from yesterday. Not what you want to see if your bullish.

I have changed my count (again) because I do not believe that we have finished C down at the 865.25 L. There are basically 3 counts (actually more) I feel may be in play:

1.) We have finished our ABC down from the 953.50 H. This would complete an intermediate X wave. We have started back up the rally.

2.) We completed our rally from the March 6 lows and its time for the "Great Bear" to return and crush everything in its path. This means that we have completed 1 down 2 up and are in the beginning stages of 3.

3.) We have not finished the ABC from the highs as of yet. We have completed A down and B up and are still working on C (to complete X). The 865.25 L completed a smaller degree A and we have started working on a smaller degree B with C to follow.

I'm in camp #3. This means that the H/S will play out to whatever degree it does. Maybe it makes its entire measured move. Maybe its just 1/2, or maybe it goes beyond the measured move. We will just have to see.

What happens at that point? It's my opinion that the market traces out a triple zigzag. We have completed 2 of them. Wherever X ends, we should have 1 more ABC to the upside and then this pig is done because 3 corrective zigzags are all that is allowed.

Short-term I'm bullish until B completes.


Here is an inverse H/S on the 60m chart that bears watching.













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