ES #F 101806 Another Day at the Office

Narrow trading during overnite globex. current support off 1370.50 with GH at 1373.75. We had 5 waves up into the GH. 1372.00 LIS now support. Looks like a wave 4 type of corrective wave developing. We have mixed signals currently. 120min chart has support off the 1372.00 with possibility of a little more upside

Update at 08:31 EST: GH now at 1376.50, which is a .886 fib level; sell short against that high, or on a pullback to find JOT sell short. Entered JOT ss at 1375.00 for a quick scalp trade. Sell short on first test of 1376.50 high for low risk trade. Reversed long as the higher timeframe charts are super bullish, and possible 1 more wave to come.

Update at 08:51 EST: As analyzed, one more wave made; now 1377.75 is GH. It is a 1.27 fib level. Sell short against the 1378.25 high for good low risk entry sell short. market bullish still. Sell short entry 1377.50 - either it works or it doesn't now. Higher timeframe charts much too bullish to be shorting. If I were still long, I would still be in.

Update at 09:32 EST: Reversed long on open. Upside tgts: 1382.00, 1384.00, 1387.00, 1388.75.

Update at 09:45 EST: possible 5 waves up into 1380.25. Sell pattern off both 8min and 6000V charts for exit of longs, and sell short for the retracement. We have a possible Wave B into higher high and now we drop hard for wave C. Signs of weakness into the 1380.25 top are seen on both the 60min chart (doji) and 30min chart (doji and shooting star).

Update at 10:01 EST: Short term support off .382 fib level and OP here. Let's see if we can bounce or not. IF we bounce, THEN expect a test of the current 1380.25 high. A clue that we might have just completed wave B is the corrective nature of the wave on its way up. Now the downside tgts: 1370.25, 1368.75, 1367.50, 1366ish, then test of 1364.00.

Update at 10:40 nEST: Right back to the 1372.00 LIS for support. So close to closing yesterday's gap. Possible 5 waves down into 1372.00, but still looks negative. Be on the lookout for wave extensions.

Update at 10:42 EST: gap is now closed; Remains bearish and expect downside tgts to be hit.

Update at 10:46 EST: .618 at 1370.25 hit; 1370.00 LIS now short term support. Usually after a .618 fib level has been hit, there will be profit taking, IF short from high above, THEN this is a very good area to take most of position off. Hold 1 trailer. Possible 5 waves down with wave extention in wave 5. Wave 3 looks to be the shortest here .... so watching carefully. Downside might not be done as of yet.

Update at 11:03 EST: market made a 3 wave pattern into .382 fib level of 1373.75. Mixed signals now, so more difficult to determine true trend. Higher timeframe charts remain bearish, so will continue to hold the last runner short. Stop moved to 1374.00. Market can go either way. We could still make a bigger abc 3 wave correction into the .618 (1376.25 ish) of the last move down from 1380.25. Watching carefully. Are we tracing out a complex flat wave 4 pattern here?

Update at 11:20 EST: stopped out of short. As always, trust my chart indicator. Both 8min and 6000V chart had buy signals off the 1370.00 low. Also have to remember that after the .618 fib level tgt is hit, expect a bigger retracement (most of the time).

Update at 11:26 EST: We have abc pattern into .50 flb level. Wave c has possible 5 waves up into resistance. Sell short with tight stop good low risk entry for the JOT sell short. Only concern is the 8min chart, which is NOT in alignment for the sell. Also, wave a had a 3 wave pattern look to it.

Update at 12:00 EST: 5 waves up into 1375.75 for a sell.

Update at 13:25 EST: Market continues to sell off; next downside tgt is the .786 fib at 1367.50ish.

Update at 13:37 EST: Support off 1367.75 1 tick shy of 1367.50. 1367.75 is both a 1.27 fib and 1.414 fib level as well. So good PRZ to exit shorts to bank profits. Hold 1 trailer for the buy signal off higher timeframe charts. Doesn't look like it is done yet. Possible wave 4 here, so lower low to make wave 5. Interest note: We now have an abc 3 wave pattern into a .786 fib level.... making a bullish gartley butterfly pattern. Let's see what happens to it; higher timeframe charts remain bearish (like yesterday).

Update at 14:01 EST: 3 wave pattern into .382 fib level of 1370.75 for a JOT ss entry. Only concern is the 8min minute chart, which is NOT giving me a sell signal (yet). Good for a scalp at least - made a small abc 3 wave pattern into .786 to make a bullish gartley butterfly pattern for the move back up to test the 1370.75 high. Looks and feels like more upside here is coming. The low at 1367.75 is holding for now.

Update at 14:26 EST: Bullish gartley butterfly working out after all. The clue was both the 8min and 15min charts .. both in position for buy pattern to be triggered.

Update at 14:34 EST: abc 3 wave pattern into 1373.75. Sell short against that resistance level. This is a possible wave 4 pattern here. The only concern is the 15min and 30min charts.... both say up. It is possible that the wave 4 flat has already completed. So we shall see.

The 15min chart says to stay long. Will probably get stopped out now.

Update at 15:06 EST: Wow, I did not get stopped out.