ES #F 100506 Full Steam Ahead

The market made a GH at a 1.618 fib level of 1359.50. Looks like 5 waves up from 1339.75 into resistance. Look for possible bigger retracement, especially after big move yesterday from low of 1339.75. Have we completed wave 3? Only time will tell.

Update at 07:51 EST: 5 waves down into 1356.75 look for retrace of small move down fro the high. Buy signals off both 8min and 6000V, so look for gap close at 1358.25 and the .618 fib level at 1358.50.

Update at 08:52 EST: Both upside tgts hit. Small bearish gartley butterfly pattern for sell short against 1358.75 high. 6000V chart NOT in line for the sell short though. So higher risk.

Update at 09:31 EST: Day session only chart has now made a double top at 1359.00 for a good sell short entry. Price action bullish; so long as 1359.50 GH holds, we have a good sell short entry trade. This is the countertrend trade, as the higher timeframe charts remain bullish still. Tight stops are a must. 30min chart says to be bullish, no sell pattern as of yet.

Update at 09:47 EST: Sell short again for larger retracement.

Update at 10:01 EST: Sell short again for larger retracement.

Update at 10:32 EST: Support here at 1356.50 for scalp long entry or "take some off the table for the shorts" -- retracement coming.

Update at 14:58 EST: double top at 2360.75 for a sell short with minimum risk. Keep in mind higher timeframe charts remain bullish.

Update at 15:08 EST: 1361.50 is a 1.27 fib level. I only count 3 waves so far, so possible range again for higher high to complete wave 5. Also, wave 3 can also extend.