ES #F 101606 Trade What I See NOT What I Think

Double top at 1374.75 for globex high. Sell short against this high for low risk trade. We have 3 waves down into 1370.00 from Friday afternoon trading. Then we had an abc 3 wave pattern into the double top at 1374.75. The only concern is the bullishness of the higher timeframe charts, so caution is key.

Update at 09:37 EST: Short term support off 1371.50 which is a .707 fib level. We are also at the 1372.00 LIS. Long signals off both 8min and 6000V charts. Still mixed signals, so key is to watch the lower timeframe charts for clues and for scalping. Market is making an attempt to close the gap at 1373.50. The 34ema is flat, so we know we are rangebound.

Update at 09:45 EST: Higher timeframe charts are in position to trigger sell patterns. Possible that wave 4 here is incomplete.

Update at 09:51 EST: Gap is closed. .786 fib level at 1374.00 is now resistance, and forms a bearish butterfly pattern, however the 8min chart looks bullish still with no sell pattern as of yet.

Update at 10:33 EST: 5 waves up into higher high of 1375.00. Sell short for pullback and retracement. IF 5 waves up, THEN look for abc into .618 of range ... or in this case, 1373.00 ish (OP is at 1372.75).

Update at 10:58 EST: 1373.00 tgt hit; buy signal off 6000V chart for test of high; watch 8min chart for shamu sell short as possible.

Update at 11:24 EST: Price action bullish; we are trading above OP; Higher timeframe charts remain bullish.

Update at 11:29 EST: Narrow range day thus far. Either sell short against 1375.00 high, or buy against the 1371.50 low. Bias is to the upside.

Update at 12:01 EST: Market looking to edge higher.

Update at 12:06 EST: Higher high into 1375.25. Possible 5 waves up into it. Sell short against this high for low risk trade entry. Once again, IF we have 5 waves up, THEN look for abc into .618 fib level or 1373.00 once again. However, need to keep in mind the higher timeframe momentum, and also, the fact that we can have wave extention.

Update at 12:29 EST: Buy pattern off both 8min and 6000V chart. Possible higher higher into 1376.00 ish. But first needs to take out the current high at 1375.25. For now, friday high of 1374.75 is important LIS.

Update at 12:51 EST: Sell short with test of 1375.25 high.

Update at 13:09 EST: Market too bullish for the sell short.

Update at 13:22 EST: 1376.25 current resistance. 1376.00 upside tgt hit (it was a 1.27 fib level). Higher timeframe charts remain bullish. 120min and 60min charts both remain extremely bullish.

Update at 14:55 EST: Sell against 1377.00 high.