ES Daily Candle: Lower High, Higher Low, Higher Close: Inside Candle
Market Posture: Neutral-to-negative and Probing Waves
Daily Swing Line: Lower (Lower High, Lower Low), but can go neutral over 2,993
Daily Bias: Down (Settle Below 18-day SMA)
Today, we were able to count five-waves up from Friday's low on the S&P500 cash index, in near real time, with a near perfect timing of the turn (see this LINK). After the cash close, the futures lifted significantly higher, and made a higher high. We had noted in today's comments that it was "the end of the month, and some sloppiness due to window-dressing was possible." Likewise, tomorrow is the first day of the month and that could mean inflows from the usual sources (401K's, company pension plans, corporate bonuses, dividend reinvestment plans, etc.) As a result, the daily ES chart remains the same. The minute ((b)) wave may have bottomed Friday.
|ES Futures - Daily - No Change|
Just one reminder - should the minute ((b)) wave decide to extend in time, which seems less likely at this point, then, by the principles of degree labeling, since we are saying it is a smaller wave degree than X2, then it must take less time than all of X2. So far, it is fine.
Have a good start to the evening and to your week,