This leaves the daily ES E-mini S&P futures below the 18-day SMA, with the daily slow stochastic curled lower, as in the following chart.
|ES E-mini S&P500 Futures and Outside Reversal Day Down|
What's nice is an outside reversal day gives us a "key marker". As the result of today's move, this favors the expanding leading diagonal downward scenario as shown on the next four-hour chart.
|ES E-Mini S&P500 Futures 4-hour Expanding Leading Diagonal|
Price stopped at the 78.6% upward Fibonacci retracement level, and it was noted when that happened in live chat, that this would be the best alternate for counting in the downward direction. The wave lengths are correct, and the EWO signature is "expanding" as well, and this fits the current structure. But still, all diagonal are potentials, and this one must make a lower low, and one in which minute ((v)) is longer in price than wave minute ((iii)).
For all those that have questions, yes, there are still possible upward alternate counts. One would be an expanded flat for a minuet (b) wave within a minute ((iii)) wave of an upward ending diagonal to 2401. The problem is there is absolutely no way to verify same until 2375 is exceeded to the upside before the low of 2317.75 is exceeded to the down side. So, upward counts become the alternate, and we will not speak of them until or unless 2375 is bested on the high side. This goes along with Ira Epstein's counsel that only if the high of an outside day down is exceeded in the next two trading sessions does it constitute a trap for the bears.
Because the momentum is currently pointing down, it is up to the market to prove the case for higher prices. Once again, with prices near the highest levels in history, extreme patience and flexibility are needed as the market tries to decide how to top.
Have a very good evening!