ES #F 091206 Upside Momentum

We remain stuck in the same range since last week. Overnite globex found support at 1308.00. We have mixed signals yet again this morning. Strong support at the 1308.00 level. Markets wants to go up to test the 1314.75 high. So far, we have had a 3 wave pattern into 1308.00 support.

Update at 09:32 EST: Market opens up strong, and we did indeed get to test yesterday's high at 1314.75; charts remain bullish. Double top now at 1314.75, but price action continues to be bullish; difficult to take the CT trade because of possible shallow retracements. If we take the sell short, we at least have a good entry with little risk, and can look for gap close. 30min chart remains in overbought area with no sell pattern yet.

Update at 09:47 EST: Price action remains bullish, with support at globex low. 8min chart setting up for a sell pattern, but it has NOT triggered as of yet.

Update at 10:09 EST: Test of 1316.75 high for a good sell short entry with minimum risk. Potential 5 waves up into 1316.00. IF we have 5 waves up, THEN we can looking for abc retracement into .618 at 1311.00 -- this is looking good for a gap close at 1311.50.

Update at 10:34 EST: So much for a gap close. Possible 5 waves up now into 1317.75; this is a 1.414 fib level. Higher timeframes remain bullish with no sell pattern completed. We will probably range for a bit, for a possible wave 4 before going higher. Upside targets today: 1317.50, 1318.00, 1319.50 ish.

Update at 11:08 EST: 1319.50ish target hit. Higher timeframe charts remain extremely bullish. This is a possible area for some consolidation. 1319.75 is .886 fib level. Massive short covering ... the "orange squeeze" as per tigerwings. 8min chart shows very strong uptrend - 8ema holding as support for price, we have "daylight", we are well above the 34ema. This is acting like an impulse wave 3.

Update at 11:23 EST: 8min looking weak, expect some kind of retracement. We have divergence, and a sell pattern that is about to trigger.

Update at 11:35 EST: 1320.50 is a 1:1 fib projection level. Setting up on 8min for a sell pattern trigger. This is a good low risk entry area for a sell short for a deeper pullback. No sell pattern yet off the higher timeframes, so possible wave 4 consolidation/congestion area before higher. IF it is a wave 4, THEN look for higher high to possibly sell short. Upside targets are: 1321.25, 1322.50, 1323.50ish (stronger PRZ here).

Update at 13:18 EST: IF this is wave 4, we should retrace deeper .. looking for test of 1316.75 LIS, then 1315.75 to 1313.75 ish as possible. I have sell patterns setting up and triggering off the lower timeframe charts

Update at 13:22 EST: nice double bottom for test of high and possibly higher.

Update at 13:50 EST: 1321.25 target hit. It is a 1.27 fib level after wave 4 type of pattern. 120min chart remains extremely bullish.

Update at 14:40 EST: 1323.50 target hit. Possible 5 waves up now. Watching carefully. 1323.50 was both a 1.414 fib and a 1.27 fib projection level.

Update at 15:53 EST: still no sell pattern off 120min and 60min charts.