ES #F 080906

The daily chart shows that we have retraced to a .382 fib level. This pullback from 1297.75 high to 1272.00 low could be wave 4. IF this is a wave 4, THEN expect wave 5 to be higher high, with a target(s) of: 1302.25, 1304.50, 1309.25ish. The Daily chart has a bearish pattern that is getting ready to trigger. IF the market continues downwards, THEN the bearish pattern will be triggered and possible new lows. The key is to watch the higher timeframes tomorrow for clues as to which way the market wants to go -- up or down from here.