Three Waves Down (Could Extend)

Again, largely just for something more colorful and fun, the ES hourly chart below is presented in Ichimoku format. The price bars were skating along the combination of the Tenkan-sen (green line) and the Kijun-sen (blue line) until the cash opening this morning. At that time price broke down through a very thin cloud accompanied by a T-K cross (Tenkan-sen green crosses below Kijun-sen blue line).

ES Futures - Hourly - Ichimoku format

This price action also drove the brown lagging-line (the Chikou-span) below the candles which is a bearish indication. Further, after days of a green cloud, the price action has at least temporarily flipped the future cloud to red (though it is quite thin). Both the hourly MACD line and the signal line dropped below zero for now.

From an Elliott Wave perspective - if we hide the Ichimoku - it looks like there are only three waves down in a channel where the third wave is >2.0 x the first wave lower. The three waves down are either i,ii,iii or a,b,c to be counted equivalently until there is more information, like - for example - a fourth wave that does not overlap upward. See chart below.

ES Futures - Hourly - Three Waves in Channel

Time will tell, but the Ichimoku and MACD indications are weakly bearish at this time. So, we watch the channel and mind the high until there is more information.

Have a good start to the evening,

TraderJoe