Stuck in the middle with You - 2

The ES daily futures made a lower low than yesterday, as was anticipated from yesterday's intraday chart. But, they did not make a new low for the move downward.

ES Futures - Daily - Lower

The result was a fairly narrow range bar with a slightly lower settlement price. The bias remains down as the day settled under the 18-day SMA, however, the daily slow stochastic is in the over-sold range.

From a wave count perspective, price is currently in this downward channel as shown on this hourly chart of the ES futures. Price again fell to the round-number support at the 3,000 level, and then bounced.

ES Futures - 1 Hr - Mid Channel

The location of price currently in the channel shows how little urgency there is at the moment to the down trend. We remain sort-of 'stuck in the middle'. If price breaks significantly above the channel, a larger B wave or 2nd wave would be counted. If price significantly breaks below the channel, a larger C wave or 3rd wave would be counted.

The NQ futures did tick below their low of two days ago. So, the swing line may have also turned negative for that index. 

Have a good start to your evening and to your weekend.

TraderJoe