Test of prior low

The market went to test the 1229.00 low, stopping 2 points from it, at 1231.00. The trouble with wave 4 patterns is that once wave 5 completes, the market will have a larger retrace. The key is to try to determine where wave 5 might end. A clue that wave 5 had completed was the ES #F day session only chart, showing a clear buy pattern.

Now that we have tested the 1229.00 low, let's see if there are enough bulls bullish enough to take the market up higher to re-test the high at 1331.25. So, the upside targets that I will be eventually looking for will be: 1292 to 1309.25 and within a couple of points of 1331.25 high. But, before we can even get there, the market has to retrace the last leg down from 1290.00. I will be watching the daily chart for signs of strength for higher, or weakness for lower. For now, the daily chart shows potential for higher from here. Let's see what the market brings us tomorrow.