ES #F 090806

The daily chart remains slightly bullish and in overbought territory. We seem to be stuck in a consolidation/congestion range. Is it a wave 5 triangle for more down, or is it a wave 4 for more up? We have mixed signals so far today. The 1308 zone is current support heading into today's trading day. The range is getting narrower and narrower; current range resistance is 1313.75 and support at 1305.00.

Update at 09:33 EST: OP at 1309. Let's see if we can get a gap close at 1307.50 early into the trading day.

Update at 10:06 EST: Gap at 1307.50 closed. More downside to come, and looking for test of 1305.00 low, then test of 1304.00 low.

Update at 10:16 EST: Bullish gartley butterfly with support hit at .786 fib or 1316.25. Higher timeframe charts remain bearish.

Update at 10:46 EST: The move up off the .786 fib was in a 3 wave pattern. Looks like more downside to come today, so long as 1311.00 resistance is not taken out. The usual targets for butterfly patterns: .618, .786, test of top, and 1.27 fib levels.

Update at 11:02 EST: .618 target at 1209.25 hit. Now this sets up a potential bearish gartley butterfly for a move down. Watching carefully. Higher timeframes now slightly more bullish, so it can go either way. The 60min chart contains a hammer at the current support level of 1306.25 (.786 fib level).

Update at 11:55 EST: Double top at the 1309.50 for another sell short entry. Looking for test of the 1306.25 low and possibly lower.

Update at 12:15 EST: market remains stuck in narrow range. Short term support at 1307.50 which is another .618 fib level. However, still looking for lower still. Can we break 1305? Only the market knows for sure.

Update at 12:26 EST: Small bullish butterfly pattern with short term support at .786 fib or 1307.00. Range is getting tighter and tigher.

Update at 12:51 EST: Potential 5 waves in a wave C type pattern. IF it is 5 waves, THEN look for possible move up.

Update at 14:00 EST: And up we go. Resistance at 1.27 fib -- 1312.50. It is also possible that we are forming 5 waves inside a Wave B; watching carefully. 8min and 6000V charts are in position to have sell patterns to be triggered for a good entry short.

Update at 14:30 EST: We remain stuck in same range; further extensions of waves within congestion area. No sell pattern as of yet on the 120min chart.