With due apologies to Macca, today we made a fifth wave down that pierced the lower daily Bollinger Band - and ran it a bit - but did not fill the futures gap as per the daily ES futures chart, below. While the futures are still trading as this is written, if the close remains near here, then there is an outside day down.
I had cautioned in the comments to be cognizant of that lower daily band as the Smart Money often like to take profits there. And there was a significant rebound back inside the band to near the open of the bar. So, with five-waves-down, according to the Principle of Equivalence, all we can claim is that there is an a/i at the low of the day.
Today's rebound is very short in time compared to the length of the down wave, so there is a way it can persist for a while. Further, the down wave has downwardly overlapped some additional up waves. It is possible price can go sideways inside the band for a while as the daily slow stochastic is now in over-sold territory.
Today being a weak outside-day-down be careful of the high of today's bar (ES 7,491) for the next two trading sessions as if it exceeded, it might set a trap for the bears.
Make no mistake, this down wave now measures too large to be a simple correction to the up wave. Probably there will be at least one more down wave to follow it, maybe more.
Have an excellent start to the evening,
TraderJoe
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