Mean Green Machines

I'm a bit envious of the Smart Money that has the machines. What a tool. See below for a little more explanation. The ES futures made overnight lows on the US Payroll Employment Report. That's the large down bar on the left of the chart, below. Little of that was seen by the cash open. Further, the Consumer Confidence Inflation Expectations came out more benign at 10 AM, and the ES put on another leg higher. Here is the ES 10-min chart.

Beginning about 10:10 am there was a three-wave-sequence downward, until about noon, and roughly then, you could tell "someone turned on the machines", much like you can tell when the casino 'turns off the slot machine' and you get no winners until your stake runs out. Look at that long and choppy pattern to a new high. It looks like and can be counted like it is 'five-waves-up'. Yet it in no way has the same impulsive character of the preceding up waves. Still, it grinds and grinds to a new higher high with not even a 38% percent pull-back along the way. "Hello Machines" - to keep prices higher into the Friday daily, and weekly close. It's similar technology. They monitor your account. They control the algorithms. You are being traded against. They are the house. You (and I) are not.

From a wave-counting perspective, that wave came out two-points-shy of validating an expanding diagonal wave. Then the cash market closed. An expanding diagonal could still occur, but not below the low of what is marked wave ④ - and the local wave-counting-stop.

From a non-wave perspective, it feels like something is going to happen soon. The reaction of the equity markets to everything is bullish. The Payroll Employment Report doesn't matter, but, oh, it's the Consumer Expectations report that really matters. Yeah, right (uh, no).

So, stay tuned. A number of things are falling into place. It will be interesting when they do.

Have an excellent start to the evening and the weekend,

TraderJoe