Inside Day Down

U.S. Debt Clock: $23.11 Trillion; prev $23.10
ES Daily Candle: Lower High, Higher Low, Lower Close: Inside Day
Market Posture: Neutral-to-Negative
Daily Swing Line: Up
Daily Bias: Up (Settle Above 18-day SMA)

In the comments section of the previous post, we were only able to count three-waves-up in the NQ 100 futures. These futures made a new daily high. Neither the Dow cash, nor the S&P500 cash indexes nor the ES futures could muster the new high. The result is shown back in the daily chart, below with an inside day.

ES Futures - Daily - Inside Day

The three-waves-up, so far, show the c wave that is less than an a wave in length. But, in the NQ and the ES, the up wave is 90% of the length of the down wave, and therefore can qualify for the "b" wave of a flat wave.

One of those powerful third waves up could not even break the upper boundary of the parallel trend channel in the hourly ES futures. The NQ futures new high was on another divergence.

Readers should now be on alert for a potential critical overlap which may prevent further upward counting as an impulsive wave.

This should still be considered as part of the larger minute ((b)) wave down until or unless something occurs to prevent that count. The daily prior highs in September remain an excellent first target.

Have a good start to the evening, and to the week.

TraderJoe