ES

ES finished down with a bearish candle combination for the last two days. Range was 20.75, which is misleading, as half took place during globex. Volume expanded from yesterday.

We gained a little bit of clarity with today's price action, although, far from anything definitive. It appears that minor B is in full swing. I think that a close under the 989.75 L would be a deal closer. Notice that level acted as support today.

I have the count labeled as a zigzag. I believe that it counts best this way. We clearly had two sets of small 5's down to the 1000.50 L, then notice that we had price overlap (on a close basis) with the retrace.

I may need to ratchet up the degree's one notch. The key will be if price prints 998.50 on this retrace. If it does, it confirms the zigzag. If not, then its possible that we have a 1-2, 1-2 situation and we are entering wave 3 of 3.


b retraced 70.7% of a, which leads me to assume that we will see the 141.4% projection of a at 985.75. The 60m projection comes in at 984, while the 15m terminal projection sits at 980.

Watch for the potential of a Bullish Butterfly that could setup in the 983 area.

I do have to admit that I like my previous count of an expanded flat. It's hard to tell at this point what the precise structure is. The bottom line is that we should see continued weakness.

Look how the 100 lotter's unloaded on the retrace. Somebody was going to get crushed here...it wasn't going to be the gold line :)

This is the perfect example of why I pay attention to this indicator.

This coincided well with the 15m deadly at 996.50.