Battle for the Line in the Sand

Many times we have written about how the 18-day SMA is often termed "the line in the sand". Like yesterday, today tried to make the higher high needed for price to meet it from below, but it couldn't do it resulting in just an inside day with a wide-range in price. The daily chart is below.

ES Futures - 1 D - Near the 'Line in the Sand'

 

If price can get over the 18-day SMA on Sun-Tues it might constitute an impulse up depending on how it is formed.

But from last night's high to this morning's low, and this morning's low to this afternoon's high we could only count three waves down and three up (a -3-3, if you will). So today could be part of a Flat wave in a fourth wave position within an 'a' wave up, for example. See the comments for the prior blog post if interested in the internals waves, one of which was a nicely formed triangle that we called in real time.

Oh well. The weekend is here. No one seems too interested in wave counting or measuring waves. Ho hum. I wonder what that might be a sign of, eventually?

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

TraderJoe