ES #F 071906

Market looks like it has reversed from down to up, with the low at 1229.00 holding for now. We have possible end of wave 3 into the high at 1251.50. Looking for higher after wave 4 range is complete. Daily chart has chart pattern for more up... just need to watch the lower timeframes for confluence of upside momentum to confirm the upside move. IF we have 5 waves up, THEN I will be looking for a big abc move down to retrace the leg up from 1231.00 low... targeting the 618 fib as eventual target. If we are in fact in a bigger Wave 4 for more down ( lower low than 1229.00) then I expect we can be stuck in this range for a while for a complex corrective pattern to be played out.