Limbo

The primary intraday chart we use is the ES 30-min for wave counting purposes. A look at the chart below from today's session shows some reasons why.

Notice how much of today's wave was made in the after-hours. It is astonishing what doesn't show up in the cash market (except as a gap, of course). Prices appeared to have made three waves up so far. Possibly because of the summer-doldrums, the market - while  basically positive today - still only made an inside day and didn't answer any good questions yet. The retrace to the high was a 78% wave to an incredible fit and wave iii/c can be seen to be a Fibonacci 2 x i/a. 

As a result, the chart is left in a bit of limbo. The Principle of Equivalence tells us that, "a,b,c is i,ii,iii until it is not". So, with an upward extension on Monday/Tuesday, it is certainly possible to go over the high again with a iv, v.

But other counts are possible too including a downward diagonal to make a larger fourth wave, and a sideways triangle to just waste more time.

So, again, patience and flexibility are still needed until the market gets ready to make a bigger statement.

Have a good start to the evening and the weekend.

TraderJoe