Higher High Unch Close

The ES daily futures have a weird candle on this site because of the two overnight sessions. Once they get resolved, today's candle will look like a "spinning top" candle.

Prices in the overnight sessions went up to attack the upper daily Bollinger Band, traded outside of it for a bit and then closed back inside the band about unchanged, making for the spinning top candle. After-hours prices seem to be hanging below the prior close. There is a way to count a high here (involving an expanding diagonal shown in the comments for the prior post) and it can go on a bit yet, if the market deems so.

The market is waiting on debt-ceiling news and other important economic indicators due out later this week. With the newer high in the overnight, the w-x-y  or three waves of a contracting diagonal looks like the better count than the triangle. The triangle's odds are falling pretty quickly with each new marginal high.

Nothing yet says we have topped, although we may have. The NQ futures got a dragonfly doji for the sessions. As with all candle patterns a confirming candlestick is required.

It is possible news of a deal or no-deal will come at an inopportune time (sleeping, eating, exercising, working, etc.) so be careful, patient and calm.

Have a good start to the evening.

TraderJoe