ES #F 082106 The Day after Options Expiration

The ES #F is looking weak. Short from Globex high. We have a large gap down this morning. Higher timeframe charts say down for now. Both the 8min and 6000V are currently below the 34ema and the 89sma. We tested the globex low, for a good buy entry scalp. Market found s/t support at prior visual of 1301.25. IF we have 5 waves down, THEN look for abc back up into .618 to .786 fib levels. However, the gap is at 1307.25, which is closer to Friday's high of 1307.75. 60min and 120min remain bearish though with no buy signals, so any longs will have be scalps initially.

OP is now resistance with bearish price action. Downside targets for today: 1299.00, 1298, test of 1296.75 low, test of 1295.50, 1294.75, 1293.75ish, 1292.251and 1290.50ish. We also have a gap below at 1287.75 that remains to be filled. Today could be a trending day down.

Update at 09:44 EST: we have a small double bottom long signal for entry into the long retracement move -- however, 60min chart still bearish. The Day session chart only created a kicker signal patternupon the open. According to Stephen W. Bigalow, this candlestick pattern is one of the major ones, and is a very strong indicator. Let's see how this will play out for the day.

Update at 10:15 EST: We have tried to move up, but the market remains stuck in range and below OP. However, there is a buy signal now off the 8min chart, for the retracement move up. First target is the test of the current high at 1303.50 for possible wave c. Remember, the Day session only chart and 120min chart both have no buy signals yet.

Update at 10:51 EST: Possible 5 wave triangle here. OP is resistance. IF we have 5 wave triangle, THEN look for more down.

Update at 11:14 EST: Market funds s/t support at 1300.00, which is a .707 fib level. 120min chart still bearish with no buy signal yet.

Update at 11:31 EST: Globex low of 1300.50 is now backend support. Can we go up from here? Signals remain mixed, and higher timeframe charts say still bearish somewhat ( no buy signal).

Update at 11:51 EST: Market bearish; Looking for momentum to pick up to the downside.

Update at 11:57 EST: First downside target at 1299.00 hit; looking for lower still.