Targets Remain the Same

Nothing has changed target-wise since Saturday's wave chart post. It seems to be only a matter of how we get there. Here is the ES daily wave-chart updated from Saturday.

As stated previously, wave Minor 4 is already longer in time than wave Minor 2 as would be expected in an expanding diagonal. It would also need to become larger in price points above the 4,168.25 minimum shown. Should price gap up tomorrow, as possibly suggested in the after-hours market, then the red count - from yesterday's post - might be the one operating and we could launch into red (iii) of minute ((c)) of 4. If the price structure reverses, then perhaps we are making the minute ((b)) wave in yesterday's black count. Both counts are still active, but if price extends beyond certain limits tomorrow it will greatly reduce the right look of the contracting diagonal count.

Keep in mind that diagonals are low probability patterns that must prove themselves in every detail. In that regard, to keep the pattern intact, then the invalidation level shown may not be exceeded.

Have a good start to the evening,

TraderJoe