ES

It was a pretty ho-hum trade day, as ES was working off a wave 4 correction. Total range was 11.50 points with volume coming in just slightly less than yesterday.

Then the fireworks started as everybody got juiced up on Intel's bad numbers after the close. We gapped up when we re-opened and ran to 912.75 where there was a ton of different resistance stopping the party in its tracks.

You will notice that we ran into a couple trendlines. The blue one is from the 952.75 H and 928.25 H. Price just happened to nail those TL's at 912.75, the 1 bar 60m price projection - how random!

I am maintaining my preferred count, however, my confidence is waning. We may very well have ended C (white) at the 865.25 L. The retracement is getting pretty deep as the 78.6% sits at 914.75. I'm ok if C is done, however, the cycles seem to suggest that it's just not time for us to start a run higher.


This is a different look at basically the same thing via a 2.5 point range chart. Notice the nice channel this structure has working. Whenever we break the 2-4 line, you will know that this specific leg is finished.

In my opinion, the bulls need to drive this as high and fast as they can to get away from the H/S neckline. Right now that sits at about 891-92. When this leg finishes, there will be a retrace. If they can keep that retrace from breaking the neckline it will make their life a lot easier. No need to embolden the bears by giving them confidence if the neckline gets taken again.

Bigs started accumulating around 2 CST and continued buying until the close. At the time of this writing, they are +10.2k










Here is a beauty of a Bull Butterfly that signaled the low of wave 4.








Pay attention to the 915.50 area should we get that high. If they turn it there it would complete a Bearish Crab pattern.