ES Daily Candle: Higher High, Lower Low, Higher Close: Outside Day Up
Market Posture: Neutral and Probing Waves
Daily Swing Line: Up (Higher Low, Higher High)
Daily Bias: Up (Settle Over 18-day SMA)
Today was FOMC day. The FED decided to cut by one-quarter point. The endless stream of "free" money (sic) continues. At one point the Dow was down -250 points. At that point we issued a comment showing the wave count downward as only (w)-(x)-(y): a complex wave - probably a minute ((b)) wave, as shown in the chart below. See yesterday's comments for more detail.
|ES Futures - Hourly - Complex Minute ((b))|
At that point, the market reversed, headed higher and made a very nice impulse wave upward. Here is the count on that wave on a one-minute chart.
|ES Futures - 1 Minute - Impulse|
Note the clear 1.618 extension within the wave, the alternation between waves two and four, with two being a zigzag and four being a flat, and, then, the near equality between wave ((5)) and wave ((1)). And this was on a (gulp) one minute chart.
The market should retrace for a second wave, and follow that through with a few further upward waves in what should the minute ((c)) wave of the Minor Z wave within Intermediate (B).
Even though the count was exactly correct at today's low, you will note how few people commented on the value of wave counting. Some want to simply show their ego and their bravado and their ability to express an opinion based on a few facts. Yippie for them.
Have a good start to your evening.