Price remained above the 18-day SMA, and therefore still has a bullish bias, although the slow stochastic is in over-bought territory. And, the swing-line (higher highs and higher lows) is still up. More-than-likely, the "smart money", is still targeting the daily upper Bollinger Band, as below.
|ES E-Mini S&P500 Futures - Daily - Outside Day Up|
Today was actually an "outside-day-up", and it was again riddled with speeches from the FED Chair and other members. Being an outside-day-up, it would be significant only if the low of today was taken out in the next two trading sessions. The above analysis is the first reason the diagonal is gaining odds.
The second reason, as discussed in yesterday's comments, is 'there is no sign of a clear topping candle on the daily chart.' There is not an evening star, or an inverted hammer, or a bearish engulfing candle. The upper daily Bollinger Band coincides with minute ((c)) = minute ((a)). So, this level is likely to provide some still resistance to upward price movement. Is the 100 period SMA (the green line) out of the question? Since it is inside of 1.618 x ((a)), it is not. As a result, patience and flexibility are still greatly needed as the trading algorithms and the news continue to present overlap upon overlap. This 'slowed pace' of both down and up price movement may be well in-tune with the personality of a diagonal wave.
Have a very good start to the evening.