ES #F 090606 Contract Rollover

Yesterday, we made a 5 wave pattern down into 1310.00 support; this was followed by 5 wave pattern up to test the 1316.75 high, where it found resistance, and is falling into a potential PRZ of 1308.25. 1308.25 is: .382 fib, .618 fib, and a 1.27 fib. There is also a small LIS at 1308.75, providing short term support. Charts remain bearish looking for the moment. Expect that we could close the gap below us at 1305.50.

IF we have 5 waves up from 1291.50 low, THEN I will look for an abc type pattern into .618 fib at 1301.50.

Update at 09:33 EST: Market opened weak. We do have a gap open, so there should be possibility of buyers to take this market up to try to close the gap. Watching closely. 8min and 6000V charts are in position for a move up; let's see if we get one or not. Price action much too weak.

Update at 09:53 EST: Waiting for 10:00 report to come out; 120min chart still bearish, as is the daily chart; possible 5 waves down now into 1306.75., and test of prior 1306.50 low.

Update at 10:50 EST: First downside target of 1305.50 hit.

Update at 13:06 EST: Market remains bearish, but no hard selling despite obvious downtrend. Contract rollover is this week. We also have a full moon today. Tigerwings also mentioned that the 7th of the month is a key day to remember.

Update at 13:21 EST: Support at 1304.25. Looking for a possible retracement now. Could be a shallow retracement; watching lower timeframe charts carefully. 8min, 15min and 30min charts have buy patterns set up for completion. Market found support at a .618 fib level, making a bullish butterfly pattern for this move up off the 1304.25 low.

Update at 13:39 EST: Walter Bressert is a cycle expert, and he put out a report "The Bull is Dead", calling for a double top on the DJIA coinciding with important cycle turns. 120min. chart remains bearish with no buy pattern triggered.

Update at 14:25 EST: Tested prior support at 1304.00 for a bigger retracement , but market remains bearish.

Update at 15:00 EST: Second downside target hit. Next downside target is 1299.25 then test of 1297.50 low. Eventual downside target(s): 1262.75, 1245.00, 1229.5 test.

Update at 15:23 EST: We have an important LIS at 1297.75 and a .382 fib level at 1296.00. This coincides with UTL also on the ES daily chart.