ES Daily Candle: Higher High, Higher Low, Lower Close: Neutral Candle
Market Posture: Neutral-to-Negative and Probing Waves
Daily Swing Line: Neutral (Lower Low, Higher High)
Daily Bias: Down (Settle Under 18-day SMA) for third day
First, let's finish with yesterday's chart for consistency. As anticipated, prices traded higher in the overnight, then opened higher this morning and traded marginally higher for about 30-minutes, then began to sell off.
|ES - 120 Minutes - Second Wave|
The up waves are best interpreted as an ((A)) wave, up, and a barrier triangle for a ((B)) wave - based on degree - followed by a ((C)) wave to the new high. After today's high, we counted five waves down in a channel, with good form, using The Eight-Fold Path Method. IF today's high is a second wave, then the dotted magenta line down from the previous high should hold. If the bottom is not exceeded relatively soon (days), then the best alternate is that a second wave might extend as a double zigzag, so a lower low below ((B)) that does not break the wave i low might only be an alternate x wave. But, right now, the EWO signature is that of a second wave, having retreated most of the way to the zero line.
Next, let's go back to the daily chart.
|ES - Daily - Battle at the 18-Day|
Have a good start to the evening.