ES Daily Candle: Lower High, Higher Low, Higher Close: Inside Day
Market Posture: Negative
Daily Swing Line: Neutral
Daily Bias: Down (Settle Below 18-day SMA)
If yesterday ended what looked and measured like three-waves-down, then today certainly appeared as only three-waves up. The intraday chart of the ES 30-minute is below.
|ES Futures - 30 Min - Three Waves Down and Up|
The retrace upwards did not take price beyond the 62% retracement which can be seen as a sign of some weakness. The up waves and down waves are roughly equal in the number of candles. Since wave ((C)) is longer than wave ((A)) in both series, it seems like the waves should be of the same degree. Therefore, it is possible to conclude a downward diagonal may be in the formative stages.
Time will tell. Have a good start to the evening.