ES #F 082806

The daily chart shows heaviness; however, the 120min and 60min charts show upside momentum for this morning. Globex low is at 1294.50, having made an abc 3 wave pattern down into that support level, which also happens to be a .707 fib level. It also happens to be a 1:1 price projection as well, thus making it a stronger PRZ. Upside targets for this upside movement are: 1299.00, 1301.00, test of 1301.75, and 1302.75 to 1303.75 and test of 1304.25 high. Currently market is finding short term resistance at a .382 fib level of 1297.25.

Update at 08:56 EST: In order for the daily chart to remain bearish, the market needs to sell off at higher levels than this morning. So, I will be looking for signs of weakness in which to sell short.

Update at 09:06 EST: We have a sell pattern off the 8min chart as a first trade pattern. It also happens to be against the 1297.75 LIS from last week. However, we didn't have confirmation from the 6000V chart, so expect higher risk and lower profitability.

Update at 09:42 EST. We closed the gap and slammed into 1297.75 LIS where we pulled back again to test the low. Remember the daily chart is bearish, so need to be aware of selling off this morning.

Update at 09:53 EST: First upside target of 1299.00 hit -- at the .786 fib and .618 fib for a nice potential PRZ; No sell yet off higher timeframe charts, watching closely. Next upside targe is 1300.00 area.

Update at 09:58 EST: 1299.75 is both a .707 fib and .886 fib level.

Update at 10:24 EST: 1301.00 target hit; also 1301.75 high test.

Update at 10:38 EST: 1303.75 target hit; it is a 1.27 fib level. Higher timeframe charts remain bullish. We have a gap at 1307.25 that remains to be filled. However divergence and important PRZ says we pullback here, how much remains to be seen.

Update at 11:06 EST: 1304.25 is a PRZ - 1.618 fib, .786 fib and also .886 fib. We also have possible 5 waves up off the 1294.50 low. However, 60min still very bullish.

Update at 11:21 EST: I do have 8min and 6000V charts showing sell patterns triggered. Remember, the .786 fib creates the bearish gartley butterfly. Let's see if this is the end of wave B and now the beginning of wave C or not.

Update at 12:01 EST: 1305.75 is current high, and it is a prior visual as well as 1:1 price projection and .886 fib level. 120min chart is still in extreme however, so if long, remain long as there is no sell signal in sight.

Update at 1:53 EST: Market remains bullish with no sell signal off higher timeframe charts. Upside targets for the remainder of today: 1307.25, 1307.75 test, 1309 to 1309.75 ish if market extremely bullish.

Update at 14:02 EST: 1307.25 g closed. 1307.50 is a 1.27 and a 1.414 fib projection as well as test of 1307.75. We have an ace 1 tick sell but market extremely bullish. Major PRZ in the 1309.00 to 1309.75 area. However, test of 1307.75 is low risk sell short for a retracement.

Update at 15:21 EST: The move up into the 1307.50 high was made with divergence. JOT sell short with the retracement into .707 fib level.