I have been commenting recently how little cash and futures are having similar patterns lately. I have seen this before so it is no major surprise, but several days in a row really makes one scratch the head and give pause.
The futures trade around the clock - much like commodities do - and this morning, there was a (not) WonderWave from the ECB Press Conference on the left hand side of the chart.
|ES E-Mini S&P500 Futures - 5 min - Intraday|
You won't see any of this wave in the cash market. Cash opens with a gap down. The WonderWave was created when Mario Draghi 'promised' to do whatever is needed. The WonderWave disappeared when he provided virtually no details. Markets reversed hard, in their fastest turn in a while.
At the end of the day, I had some other chores to do and couldn't stay with the close. But, in looking over the intraday chart in the after-hours, I couldn't help but wonder if "five-down" was, in fact, made as an expanding diagonal.
Although the wave fits the price measurements with ((5)) greater than ((3)), ((3)) greater than ((1)), and ((4)) greater than ((2)) and overlapping wave ((1)), the interesting thing is it may also fit the same expanding time measurements.
But, even though the pattern is still apparently there, I would like to see more downside follow-through including taking out the b wave low that was noted yesterday. Otherwise, the pattern could be ending instead of leading.
Cash would not count like this yet.
Have a good start to your evening.