ES #F 091806 Waiting to Exhale (or for FOMC)

So far this morning, the charts look bearish - both the 120min and 60min charts have confirmed sell patterns and no buy patterns. Watch the lower timeframe charts carefully for buy patterns/signals to give indication that we have found support.

Update at 09:31 EST: Small double bottom off friday low at 1329.50 for an attempt to close the gap. Overall tone of market remains bearish. We now have an abc into 1329.00, which is a .618 fib level. This makes for a bullish gartley butterfly pattern. 120min chart remains bearish. Let's see if we can get a gap fill or not on this move up. Current LIS is 1329.50 s/r.

Update at 10:00 EST: Gap closed. We have a small bearish gartley butterfly now. Also, 1332.00 was a previous important LIS. Mixed signals now, thus making it a little more difficult to know direction.

Update at 10:20 EST: 60min bullish currently; caution is in order. Sell short against test of globex high at 1334.75 for low risk trade. Good for a 4tick scalp. Hold a runner for possible lower.

Update at 11:30 EST: We have an abc into .618 and thus a bullish gartley butterfly off 1331.50 support. Has the low been put in, and we go up to make a higher high from here? 120min and 60min chart both look more bullish for now.

Update at 12:05 EST: Another test of the the 1316.75 high. This is the second time up here, so watching carefully. We had 3 waves up into 1316.00, which was Friday's OP, and both a .886 fib and 1.414 fib level. Both 8min and 6000V chart in position for a sell short.

Update at 13:03 EST: higher timeframe charts bullish. So long as 1336 high remains in place, we will probably be stuck in this range.

Update at 13:30 EST: Potential 5 waves up into a 1.27 fib level at 1336.50 and test of 1336.75 high once again. We remain stuck in the same range. Good area for a sell short once again. Wave C should be impulsing, and take us to the lows once again, and possibly lower, to 1327.00ish. This is a PRZ (both a .786 and a 1.27 fib level).

Update at 14:11 EST: market found support off OP and .786 fib level for an exit signal for the short, and a reversal long, to retrace the move down from the 1336.50 high. Key kevel is LIS of 1332.00 -- we need to cross thru that in order to go higher, otherwise we proceed lower.

Update at 14:30 EST: 3 bars off 6000V chart, and we cannot crack 1332.00, so down we go. The 120min chart remains in sell mode. Looking for test of 1329.00 and possibly lower.

Update at 14:48 EST: We tested the 1329.00 low now. Let's see if bulls can take this market back up or not. Buy patterns on both 8min and 6000V charts.