Let's Concentrate on Form

Here is the ES 4-Hr chart in close-only line form. For the moment, let's concentrate on some elements of the chart form. First, as of the cash close, there is a new three-touch trend line (dotted) up from the minute ((a)) wave low. There is also a potential new (temporary) declining parallel down from the recent minute ((b)) wave high.

The wave labels of a/i and b/ii should be currently read as being identically equivalent until some length in the waves (and a possible fourth & fifth wave) can separate the counts. 

Today, we counted a likely leading diagonal down. It may have converted to an impulse by the end of the session. Tomorrow could back-and-fill, or it could just as easily gap lower into a third wave of either a c wave or of a wave iii. Time will tell.

Again, there is no reason price could not go directly down and break the low of the minute ((a)) wave in order to form part of the minute ((c)) wave down.

If price begins to back-and-fill the upper declining parallel would likely need to be respected or an impulse lower would be questionable.

Have a good start to the evening,

TraderJoe