Over the weekend we cautioned several times that there could be a larger (iv)th wave in play. Prices moved higher on Monday. Over-night there was a substantial rally as the Asian markets and Europe got a chance to react. The up move to 1.618 says the chart should be viewed with odds slightly in favor of a third wave rather than a c wave.
|ES Futures - 45 Min - A 1.618 Wave|
Now might be an excellent time to pay attention to the local up fractal, at iii, and the overnight down fractal that tagged the EMA-34. Wave iv did already tag 38% x wave iii. If it hits the lower channel in a zigzag it would be a 50% retrace. Nothing prevents it from forming a larger-in-time triangle.
Have an excellent remainder of the day and week.