Lower Low Day - 2

The futures made another lower low day today based on the latest unemployment claims filed. That lower low made five-waves down in the futures - which is currently seen as the minute ((i)) wave of Minor 5, lower. This is shown in the half-hourly chart of the futures below, and wave minuet (v) of minute ((i)) occurred on a divergence with the Elliott Wave Oscillator.

ES Futures - 30 min - Minute ((i)) Completed

At that point, a rally began but it occurred in only three waves, with c = 1.618 x a to the pip.  We waited for a clear fourth wave, and a higher high to happen without overlap. It did not.

There was then a three wave down move in a channel, which was a zigzag, and in which the b wave of the a-b-c move was a Flat. The c wave proceeded in an unmistakable non-overlapping five waves lower. At that point, there was another rally that broke out of the channel and may be counted as a five-wave sequence. You are free to check the counts from the short-term 5-minute chart below.

ES Futures - 5 Min - Structure From Minute ((i)) low

Thus, it would seem that a structure like this is trying to form a double zigzag, upward, or perhaps a larger flat wave for the minute second wave of wave Minor 5, down.

As you can see from the first chart, minute ((ii)) - if it ended here - would be 'very' short in time compared to minute ((i)), so we don't think it has ended here, both because of the length of time, and the current upward count. And, so far, the upward wave has retraced less than 50% of the downward wave.

Well, it's a correction, and the market is doing its level best to confuse. 

Have a good start to the evening, and let's see what tomorrow's payroll employment report entails. Rest up.

TraderJoe