Tentative Rejection at 18-day

Overnight, the ES futures were up fairly strongly. In fact, they had gotten up over the 18-day SMA. However, that level did not hold. In the overnight market, we could count five-waves-down. We tried to count five-waves-up today but could not do it. The result is a topping tail candle, as in the ES daily chart, below.

Because there is tentatively rejection at the 18-day SMA, this creates a tentative trend line from the high. We can only count three-waves-up to today's high. Yes, there can be more correction of today's overnight downward wave, but so far, it has not materialized. The market may be waiting on some news.

The NQ futures did a full-on outside reversal day, down, with a lower close. The ES did not have the full outside reversal, but did have the lower close.

Have a good start to the evening.

TraderJoe