ES

Back to back negative closes - that's unusual. Range was 18 points and volume came in lighter than the previous session.

The topping process may have concluded. It appears that we traced out an expanding flat after the completion of the [v] ending diagonal. I believe it counts best this way, although, you could make a case for [v] finishing at this mornings 1007.75 H.

If further price structure tells me the Orthodox high is 1007.75, I will make the necessary changes. (c) may have possibly completed already, thus completing [a] with it. It is also possible that today's action finished a sub-minuette i and we are in the process of tracing ii of v to finish (c). The degree's can be tricky at times.

In either case, we should see some retracement here with more downside pressure following. My guess at this point is that minor B will be fairly shallow and more than likely wrapping up within a week or so. This is just my guess based on structure so far.

Targets to the downside include the 23.6% of A at 972 and the 38.2% at 951.50. I'm hoping for the mid 960's where I have a couple 261.8% projections and of course the 4th of lesser.

The new 1 bar daily projection (yesterdays was negated) comes in at 960.50.

Another day of distribution.

Did you guys see where Prechter is recommending laying on a short line again.

"If you actively invest in the stock market with money you can afford to put at risk, it's time to return to the short side. It may be early in terms of both price and time...you can return to half of your former holdings."

He is saying you can take a 1/2 position currently and scale in the rest if we have higher prices. He issued his monthly Elliott Wave Theorist early to get this out.

I have to agree with him that it may be early in both price and time. But you never know.