ES #F 080806 Just Another FED day .....

Market opened with a slight gap up and with mixed signals. Looking for a gap close and possible test of yesterday's low at 1277. Watching closely as we are still stuck in the same range as yesterday. We have a gap above at 1286 from Friday, and a gap below at 1282.25 from yesterday. IF 1285.75 holds, THEN I will be looking for a short sell to test the 1277.00 low.

IF we have a trending day down today, THEN I am targeting the 1272.25 and lower...... 1270.75, 1264.25, 1259.50, 1256.50, 1255.00 area. The reason I am slightly biased to the downside is the fact that the charts are giving me bearish signals.

Update at 10:08 EST: Price action slightly bullish on the short term charts. Looking for test of the Globex High and possibly the upside gap to be filled if this continues. Otherwise look for sell signal off the 1285.75 high.

Update at 11:40 EST: We made a 3 wave pattern into .786 fib level. Do we pull back from here? If so, by how much? Right now, we are hanging out around the OP, so let's see if there are enough bulls out there who want to come out and play.

1284.75 is both a .786 fib and a .382 fib level, so potential PRZ. Charts still showing mixed signals. Shorter term charts show slight bearishness at this point. Sell against the 1284.75 with a stop above that and hold for test of the lows.

Update at 12:37 EST: Price has fallen back below OP; looking more bearish now.

Update at 13:05 EST: We made a 3 wave pattern into globex low of 1281.75. Charts still showing mixed signals. Narrow range trading today. 120min chart still says slightly downside bias for now.

Update at 1:48 EST: Looking for test of 1277.00 low, 1275 ish, and possibly lower.

Update at 2:08 EST: 5 waves down into 1280.75. Look for possible bounce to .618 fib of 5 wave range.

Update at 2:26 EST: The market made a higher high which made for a good sell. Downside targets of 1277 test, 1275 test met before a bigger bounce. Let's see if market wants 1272.25 today or not.

Update at 3:35 EST: 1272.25 target hit. 60min. chart has no buy signal as of yet. Daily chart looking a lot more bearish. We are oversold, so a retracement is likely.