ES #F 092806 Home on the Range

We have 5 waves up into 1349.27 resistance. It is also a .886 fib level. Sell short against this was good for a scalp once the 08:30 am report came out. Downside targets for this move down is the .618 fib at 1345.00. Let's see if we can get it.

Market is still a little bullish, with the expectation today that the dow would try to make a run for its prior high. So caution is key to find support and look for buyers to run this mkt higher.

Update at 09:32 EST: Early support off 1346.75 to test GH and 1350.25 high; Sell short with tight stop against the high is low risk entry trade for a scalp. Hold runners if any for the .618 to .786 fib level tgt.

Update at 09:51 EST: .618 fib tgt hit; Hold final runner for lower. Mixed signals so we could be stuck in this range for a bit. Reason for downside bias is the position of the 120min chart.

Update at 10:05 EST: Current support at a .707 fib level of 1345.00 for entry long scalp.

Update at 10:22 EST: Mixed signals currently. 6000V has sell signal in place for a pullback.

Update at 10:25 EST: abc 3 wave pattern into .618 making for bearish gartley butterfly. Sell short against 1348.25 high. Mixed patterns, so need patience and tight stops. Market is flat, so only for aggressive traders.

Update at 10:42 EST: .786 fib tgt hit - this is the usual tgt for butterflies. If this doesn't hold, then tgt the 1.27 fib at 1344.00 ish, which also happens to be in the area of a .786 fib of 1344.50.

Update at 10:47 EST: IF this is Wave C, look for 5 waves down into support for exit or reversal.

Update at 10:51 EST: .786 fib tgt at 1344.50 hit; We now have a possible bullish gartley butterfly, as we have an abc 3 wave pattern into .786 fib and also 1.27 fib of 1344.25. No buy pattern yet off 60min and 120min charts. Watch lower timeframe charts carefully for signs of support and reversal. Note that we also have perfect proportion. Only concern is the 60min which remains bearish, so need to watch carefully.

Update at 11:22 EST: Looking to be like a wave 4 consolidation wave, so expect higher high to complete wave 5 sometime.

Update at 11:30 EST: Resistance at old LIS of 1347.25 for a pullback.

Update at 12:07 EST: market remains very bearish, despite 5 waves down into test of 1343.00 low.

Update at 12:10 EST: Double bottom now at 1343.00 for long entry to test the highs and higher. Reason - 5 waves down into double bottom.

Update at 14:50 EST: Resistance and 5 waves up into 1349.50. This is also a .886 fib level. IF we have 5 waves up, THEN look for abc into .618 fib or 1345.50ish.

Update at 15:20 EST: Support off .382 fib level for upside movement. Long entry here, as this is a wave 4, and higher high is likely.

Update at 15:49 EST: 5 waves up into higher high by just 1 tick. High now at 1350.50. Sell short 1349.75 with 1 point stop.