ES #F 092006 FOMC day

General consensus is that the Fed will NOT raise rates. Overnite trading made a run to re-test the 1336.75 high. Current resistance at 1335.50 for a low risk sell short entry, as I count 5 waves into resistance (with divergence). Let's see if we can get a gap close this morning (1330.50). Lower timeframe charts looking toppy but higher timeframe charts remain bullish for the time being with no confirmed sell signal/pattern in place. The daily chart remains to be quite bullish for now.

Update at 09:45 EST: Market opened strong. Buy signal off OP now. New high expected. Upside target: 1337.50, 1339.25, 1340.50, 1341.75, 1342.50, 1345.25ish, 1358.75.

Update at 09:58 EST: Old LIS of 1336.75 is now important s/r. Higher timeframe charts remain very bullish. We do however have 5 waves up, so can expect consolidation range first before higher. Small double top for a quick sell short entry with low risk. IF we have 5 waves, THEN look for abc pattern into the .618 fib level (and lower). IF this does NOT happen, THEN the 5 waves were incomplete, and we have extension of wave(s).

Update at 10:17 EST: We have a mixed signals thus far, so caution is in order. We have a buy signal now off the 6000V chart. Is a higher high wave 5? Watching carefully.

Update at 10:46 EST: 5 small waves up into 1338.75 so good area to sell short with low risk.

Update at 12:29 EST: 1336.75 LIS is key level for today. Last 60min candle closed right at this level. This level acting like a magnet.

Update at 12:49 EST: IF we have 5 waves up, THEN look for abc pattern down to the .618 of range and lower. The current .618 fib is at 1328.50ish.

Update at 13:33 EST: Double bottom at 1336.00 for a long signal and pattern.

Update at 14:03 EST: Higher high made at 1339.75, very close to the 1340 target. Is the high now in? JOT sell short against 1338.00 - looking for lower from here.

Update at 14:50 EST: Seven waves down into support at 133.25 ( important LIS was 1332.00). Market rebounded only to find profit taking at .707 fib level of 1337.50.