ES

The ES put in a negative day with a spinning top candle. Volume was well above average and the range was 15.25 handles.

It appears that the 1071.50 H completed a micro degree [3] wave and [4] is in progress. I really thought they would have finished up [4] today and started tracing [5] in earnest.

[4] has taken on the form of a double zigzag, which is not surprising.

The 15 minute pit session chart shows that we have still maintained channel integrity. My guess is that the channel will keep until [5] completes.

A 24 hr chart has in fact broken through the channel. I believe that by the time the pit opens it will be back inside, as it appears that this [4] wave corrective is nearly finished.

This is a look at a 610T chart, which is my trading chart. It's a good view of how this corrective is tracing.

Notice the relationship between the contracting and expanding ratios. The initial (B) retraced 70.7% and (W) completed at the 141.4% projection. Should (Y) be complete, and it appears that it is, it had the same relationship.

70.7% and 141.4% are reciprocals. I have discussed this harmonic relationship in numerous past posts. I will remind you again - this relationship is very powerful and needs to be part of your ratio analysis.

I was well positioned to take advantage of this corrective, having put on a fair short-line via both September and October puts.

Well, I managed to screw it up. After we finished the initial (B) leg, I convinced myself that this pig may try turning a triangle, which certainly could have happened.

Long story short, after we started the little bounce from the 1063 level, I bailed on my September puts for chicken feed profit. The worse part is, I put on some September calls.

No biggy really, as tomorrow should be up (I hope). I will more than likely make something on the calls probably, just not a whole lot. But you never know, we may explode.

Bottom line - it appears that [4] is complete, or very close. We should see upside price action to finish off [5], thus completing (iii).

The structure off the 1071.50 H is clearly corrective. The waves have numerous overlap. The only way this could be considered impulsive is by having four 1,2's so far.

Upside targets are 1073.75, where [5] = [1], and 1082.50 where [5] = 61.8% of [1] - [3].

I don't really expect [5] to get out of hand, however, the "greater fool theory" is in full force.

Tomorrow is expiry.