Monday, April 16, 2018

Smaller Fractal

Here is a portion of today's ES E-Mini S&P500 June Futures contract. It's the part after the cash gap up. Are we getting a smaller fractal of the larger daily fractal? So far, we have had a near-perfect triangle, and a thrust out of the triangle, back-test of the triangle for a 62% wave ii, and now into a third wave apparently. The target for the typical thrust from the triangle is shown.

The triangle would be the smaller fractal I'm referring to. A self-similar pattern on (in this case) a smaller time scale.

ES E-Mini S&P500 Cash Index - 5 Minute - Triangle & Thrust

By-the-way, we called the triangle in real time in the chat room. From later trading it looks like the .a wave up, of (v) of the contracting diagonal ended at 13:50 ET at ES 2,687.00. The triangle thrust target was hit as precisely as might be imagined. The .b wave down appears to be in progress due to overlaps downward. Further update at 16:15. The cash hourly diagonal is still holding it's form as of the future's settlement. There are no issues I can see. The hourly chart is repeated below, because I know people lose track.

S&P500 Cash Index - Hourly - Likely Diagonal (v) Still in Progress

For those following the DAX, here is the potential bullish falling wedge I mentioned in yesterday's comments.

Germany DAX - Daily - Potential Bullish Falling Wedge

As I said in the comments, it would be entirely fine to back-test that upper falling wedge trend line.

On a larger note, the hourly S&P500 cash diagonal is still in very good shape.

Have a good start to the week.


  1. Much appreciate your enlightening analysis.Makes the journey so exciting. Thank you,
    Please comment on US$ outlook.

    1. Welcome. US$ eventually higher, waiting on confirmation of a bottom via a triangle on the daily chart or the first five-waves up.

    2. Thank you Sir for your prompt and succinct reply.Am truly comforted from hereon. Blessings Trader Joe.