Marginal Higher High

Today's marginal higher highs in the ES and YM futures changed nothing in the larger picture. The daily count remains the same, and is shown again below on the ES 2-day chart.

ES Futures - 2 Day - Possible Flat (X)

 

With nothing else to do but wait for the FED report-out and press conference tomorrow, today we had some fun with the one minute ES chart. First, we counted out this expanding diagonal live and in real time on the 1-minute chart.

ES Futures - 1 Min - Expanding Diagonal or TZZ

Then, when wave ((5)) reached 1.618 x wave ((3)), we noted that, and in the chart below, the retrace began, and smacked directly into the upper diagonal line, before easing off.

ES Futures - 1 Min - Retrace of Expanding Pattern

Tomorrow the count may be subject to what the FED says or does. For a further downward wave, the high should be respected. For the triple zigzag or ending diagonal alternate, price would go over the high. As a triple zigzag, it is highly possible that the down wave is a second wave. Why it might exactly match all of the parameters of an expanding diagonal leaves one's head scratching. The point loss was relatively minor on the day.

Have an excellent start to the evening.

TraderJoe