ES

ES finished the day down for a change. We had range of 15.25 handles and volume was a smidge better than yesterday.

Well, we didn't get up the 78.6% level at 1010.50 as I had hoped, but we did tick the 61.8% at 1006.50. It appears that we have finished the diagonal, thus completing A .

I would love to say we have started impulsing down, but unfortunately I can't. The best way to count this is as a three. It looks like we are tracing a flat for minute [a], with (a) and (b) complete. This also means that minor B will take the form of a flat or triangle. This of course assumes that we have in fact completed A.

(a)(b)=(c)(d) at 988.50. We had a 78.6% retracement for (b), so I will make an assumption that we make it to the 127.2% projection at 984.25. The one bar daily projection = 966.50. This fits in with the 4th of lesser. Maybe (c) gets some extension and we make it down that far.

There were three beautiful trade setups today, which are noted by the red circles. The breaking of the diagonal boundary around 1000 should have been a no-brainer sell. You easily should have gotten 5-6 handles, depending on entry and exit.

In the next setup you should have been buying around the 991.50 area for at least a tradable bounce. There was a confluence of fib numbers, completed wave structure, and the wolfe wave 1-4 target (red line).

I did not specifically make mention of the wolfe wave in last nights update, but if you go back and look at the chart you will see this target line.

The third setup was a backtest of the broken diagonal boundary line. Although not shown, this also coincided with the 78.6% retrace of (a)'s leg. A perfect place to sell this pig.


The big lotter's distributed today - finishing down about -44k net. The smallies must have been seeing that no-brainer buy level with me. They started buying and didn't quit.

If I'm correct about structure, they are going to wish the had unloaded up there at 1004. So, the bigs sold and the smalls bought. One of them is going to be right - wonder who that will be?

On a side note, anybody notice the NQ under performance the last two days? That's not bullish folks. Nor is the hanging man candle the SPX put in.