ES #F 101706 Big Wave 4?

Market sold off on overnite globex trading, finding support at a prior low of 1370.00. Gap is currently at 1376.00, so we have sold off 6 points from yesterday's close. Market should now retrace some of the move down. This is possibly wave 4 type of pattern forming. We have buy signals triggered off both the 8min and the 6000V charts.

We did an abc corrective pattern into 1372.75 which was yesterday's OP. Sell patterns on both tick and 6000V chart. Look for test of GL at 1370.00, which should provide a buy opportunity on first test for a quick scalp.

1372.00 LIS is important resistance. There is a sell opportunity against this 1372.00 LIS. We had 3 waves down in 1370.00, then a shallow abc wave into 1372.75, and now we go lower. Higher timeframe charts now bearish.

Update at 09:45 EST: 1370 LIS -- old support now becomes new resistance. IF this is a wave 4 off daily chart, THEN we can go a lot lower. Watch for wave extensions. Eventual downside tgts to watch for: 1368.00 test, 1367.25 test, 1363.25 test.

Update at 09:56 EST: 1367.75 now short term support. It is a small .382 fib level and also a 1.27 fib level. Possible 5 waves down from 1372.75 high. Long entry off this for low risk trade for a scalp initially. Higher timeframe charts remains bearish still.

Update at 10:18 EST: Market made a lower low by 1 tick; My buy long did not get stopped out. Possible 5 waves down, but wave 5 looks to be a little on the short side. 30min chart remains bearish. Look for JOT sell short on bounce.

Update at 10:35 EST: Market tested the LIS at 1367.25. It is also in area of a 1.618 fib level. We are currently now below the 1368.00 Lis (prior support becomes new resistance. Next tgt is the 1363.25 LIS and we also have a gap below at 1359.00 that remains to be filled.

Update at 10:45 EST: Buy signals off both 8min and 6000V for small retracement. Higher timeframes still say bearish.

Update at 11:06 EST: .618 fib level of last move up into 1378.25 high is at 1361.50 ish. We have a LIS at 1361.75 to contend with. It is also a 1.618 fib level as well. So good potential PRZ.

Update at 11:21 EST: 1365.25 is short term support. It is a 1.27 fib level and also a 1.618 fib level, for a small PRZ. Higher timeframes remain bearish. With this big move down in the markets, it has triggered a sell signal off the daily chart. The high has been put in for now. We retrace the move up now.

Update at 12:08 EST: Possible 5 waves down in last leg down into 1364.00 support. Looking for bigger retracement here. Upside tgts: 1368.00 LIS, 1369.50, 1371.00ish, 1372.00 LIS, 1372.75 (which is .618 fib level of total move down).

Update at 12:34 EST: 1368.00 LIS tgt hit; Looking for retracement back to test the 1364.00 low. IF we have 5 waves up, THEN look for abc pattern into .618 fib level at 1365.50ish. Higher timeframe charts are bullish. The bias is to the upside, so any shorts are for scalps.

Update at 12:55 EST: price action bullish. 1369.50 tgt hit; We now have an abc pattern into 1369.75. Possible pullback here. Sell short against 1369.75 high for possible re-test of 1364.00 low. Mixed signals so far; Higher timeframe charts have had a buy pattern in place. Lower timeframe charts have a sell pattern in place. Support at the .382 fib level for an entry long.

Update at 14:05 EST: abc 3 wave pattern into 1370.75; sell short against this resistance for low risk entry. It is a .786 fib and also a 1.414 fib level also for a good PRZ. The sell short was based on bearish gartley butterfly pattern into the .786 fib level.

Update at 14:12 EST: Small .618 fib level hit. Can we go up from here? We have mixed signals. Will hold short as I have good entry. The only concern is that we could have wave extension for wave C ... so more upside if this happens. 30min Chart says to stay long.......
So long as the 1370.75 high holds, we can go down.

Update at 14:58 EST: 30min chart told the story. Market now retracing the range : 1378.25 high and 1364.00 low.

Update at 15:05 EST: .618 fib tgt at 1372.75 hit; It is also a 1.618 fib level. Good area for some profit-taking, and to enter sell short for the retracement. The only thing to be careful about is that the 60min chart has a confirmed buy pattern in place, but no sell pattern as of yet. The sell is based on the bearish gartley butterfly at the .618 fib level. So, either it works, or it doesn't. The 60min chart says that any shorts should be scalps for now. Next upside tgt to watch for is the .786 fib level at 1375.00 to 1375.25ish. Higher timeframes say upside momentum. Current key LIS is 1372.00. We also have a gap at 1376.00 to be filled.

Update at 15:26 EST: The butterfly did not work out; the lesson to be learned is to watch the higher timeframe charts to tell me whether or not to take it.

Update at 15:35 EST: We have either 3 or 5 waves up into 1374.50 resistance. Sell pattern on both 8min and 6000V. Evening star candle pattern off 6000V and shooting star off 8min chart.