ES

As expected, ES had a follow through day to the downside, kicking the bulltards right where it hurts. Range was a nice 23 handles, as volume expanded and finished above average.

Based on my count, it appears that minuette (y) is nearing completion, if not already complete. This should finish minute [iv], after which, we should expect minute [v] up to unfold.

In order for this interpretation to remain valid, price needs to not enter the territory of [i] at 1034.25.

The last leg down to the 1041 L was choppy with overlap. This suggests that it may have been an ending diagonal. If not a diagonal, it could be the [B] wave of an expanded flat or even a triangle.

This would mean that we were still in a ivth wave, which is very possible. I like the flat myself, as it certainly appears that we had a 5 wave structure off the 1041 L.

Who knows, perhaps it was a 3 (somehow), which calls for a triangle. This would be of the running type, as [A] would start at the 1043.50 L.

My guess is that (y) finished, calling for an ending diagonal. It won't take us long to find out.

We have a potential Bullish Bat pattern in play.

Should this pattern come to fruition, it suggests that we ended "something" at the 1041 L.

I am long 1043 with a stop just under the low at 1040.75. That's one of the nice things about this pattern - small stops.

Nice looking channel on the volume chart. Notice that price was rejected the first time, then made what appeared to be a successful break, before falling back inside.

As I finish this up, brother Kane's 88.6% has held price, at least for the time being. 1042 should have been entry, but I jumped the gun.

I originally thought I would peel one off at the first target, however, I'm going to hold for second target. Greed can be good - sometimes :)

Edit: I failed to mention that I unloaded my Oct. SPY puts today. I did not end up making as much as I thought I would, but a nice profit nevertheless. I seriously considered putting on some calls towards the close, but chose not to.