Tuesday, January 12, 2021

Lower Highs, Lower Lows

After making very overlapping waves in the overnight, the ES futures this morning made a lower daily low. Cash followed suit. Both cash and futures overlapped the wave (i) location. The hourly ES futures are shown below.

ES Futures - 1 Hr - Lower Low

So, the issue now becomes whether or not there is a triangle at the lower left. If there is, there are ways to count downward. Diagonal and impulse possibilities are available. Neither would be correct if price exceeded the current wave (v) high, though.

If, however, the 4 Jan low is the low of the pattern, there might be a way to add in 'an additional wave', meaning this long drawn out choppy wave could be a fourth wave with a further higher high to come. It can't be ruled out at this point as there are insufficient downward overlaps.

Further lower lows - before a higher daily high - would tend to rule in the impulse or diagonal downward.

Have a good start to the evening,

TraderJoe

12 comments:

  1. Morning 4hr update -

    https://funkyimg.com/i/3a2Gq.png

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    Replies
    1. I’m thinking we trade down after option expiration on Friday?

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    2. Looks to me like price consolidation in an overall upward trend. I think we tag at least 3900 prior to a reversal..

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    3. Fridays highs still holding strong so far

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  2. Good morning all. This is what there is so far as I can tell. A new parallel was added.

    https://invst.ly/tg7co

    TJ

    ReplyDelete
    Replies
    1. ..watch for a possible ending diagonal 'c' wave, up. Marginal new highs, so far, after three waves down.

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  3. Quick look at 5min -

    https://funkyimg.com/i/3a2Zt.png

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  4. ES 5-min .. as far as I can tell, a diagonal with the proper measurements did occur. It is very possible an ending diagonal 'c' wave.

    TJ

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  5. A new post is started for the next day.

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