ES #F 100406 Wave 3 Impulse Wave

We now have 5 waves down into GL at 1341.75. Then an abc 3 wave pattern into .618 fib level into 1345.75 resistance. Sell short entry against that high for a low risk high probability trade for test of low and lower. IF we go lower, THEN downside tgts are: 1340.75, 1340.50, 1339.25, 1338.48, 1337.25, test of 1336.00 low, 1334.75 ish.

Update at 09:22 EST: 5 waves down into 1.27 fib level of 1340.75 for support (new GL).

Update at 09:31 EST: .618 fib tgt hit; PRZ here for move up. Market trying for a gap close. 120min chart has a sell in place, and no buy as of yet. Both the 8min and 6000V charts are in position to give buy patten trigger. Long trades will be for scalps initially (or hold trailers).

Update at 09:52 EST: 5 waves up into 1343.00 LIS resistance. Unable to fill gap. Sell pattern off both the Tick chart and 6000V chart for test of the GL at 1340.50. 120min chart remains more bearish than bullish. Day session only chart has sell pattern completed, and no buy pattern as of yet.

Update at 10:05 EST: Possible 5 waves down into LIS of 1340.00 ish.

Update at 10:35 EST: 1.27 fib tgt hit; sell short against 1347.25 high now in place for a low risk entry. Possible 5 waves up, so expecting a deeper retracement. Scalp 1 car, and hold 1 runner for bigger tgt. Mixed signals, so higher risk, but the sell short is the trade that is current on charts. Lower tgt to aim for is the .618 to .786 fib levels -- 1346.75 to 1341.50ish. But will watch lower timeframe charts for hints of support and bullish price action.

Update at 11:02 EST: Small LIS at 1345.75. Let's see if this ends up to be resistance or support.

Update at 11:20 EST: 5 waves down and buy pattern off 6000V.

Update at 12:03 EST: Test of 1350.50 high for a quick scalp sell short. Current resistance is a 1.27 fib level.

Update at 13:23 EST: abc price pattern into LIS of 1347.75. Wave C had 5 waves into 1347.75 low.

Update at 13:34 EST: 5 waves up into new high and 1.618 fib level of 1352.50. Sell short quick scalp with low risk. Higher timeframes now mega bullish. Next upside tgt is 1354.50 ish to 1360ish.

Update at 13:41 EST: Sell short against current 1352.75 high, based on idea that we now have 5 waves up in wave 3. So looking for a buy signal to exit the sell short.

Update at 13:55 EST: support off 1351.50. Higher timeframe remains bullish.

Update at 15:03 EST: 1357.00 current resistance. Market in wave 3 of 5. Wave 3 is impulsing, with very shallow pullbacks. Triple divergence and possible 5 waves up. Sell short against 1357.00 for low risk trade.

Update at 16:15 EST: 1359.00 is a 1.27 fib level.