ES Daily Candle: Higher High, Higher Low, Lower Close: Inverted Hammer Candle
Market Posture: Neutral and Probing Waves
Daily Swing Line: Up (Higher Low, Higher High)
Daily Bias: Up (Settle Over 18-day SMA)
The wave labels have been left off of the daily chart, below, for a reason. They will be published in a weekend video. Today's candle is called a weak inverted hammer because it did not close clearly red. As with most candle-stick patterns a confirming daily lower close candle is needed to suggest the end of an upward count.
|ES - Daily - Inverted Hammer|
Prices traded much higher in the evening. They tried to hit the upper daily Bollinger Band, but did not. We were able to count a completed impulse, upward from the August 28th low. (See yesterday's comments). Then prices traded all the way back down to tag the 100-day SMA before bouncing into the close. As you can see from the Fibonacci ruler on the side, prices briefly traded above the 62% retracement level, and then closed below it. From the August 26th low, one can count three-waves up.
The daily Bollinger Bands are traveling sideways at this time, and the daily slow stochastic is currently in over-bought territory. I hope to have more for you later in the weekend.
For now, have a good start to your weekend, and/or holiday!