Shock and Awww!

Readers of this blog know we were looking for a way to complete five-waves-up to a Minor A wave on the ES 4-Hr chart. With last night's shocking higher high on Nvidia's earnings and on word of tariffs being partially blocked, we got the needed higher high. By mid-morning though all of those gains were given up in the futures and then some - creating an outside range day down, as below on the ES daily chart. Aw.

The non-overlapping count is one of the few ways I can find both to follow degree labeling definitions along with the other rules of wave counting.

Note that the daily slow stochastic is not embedded, and it is possible the Minor B wave, if underway, will try to attack the combination of the 18-day and 100-day SMA's and possibly the lower daily Bollinger Band as an initial target.

The other news is that if you thought counting the Minor A wave, up, was beyond nuts, then counting the Minor B wave could be equally or more difficult, as it can be "any three" including a contracting triangle, single, double or triple zigzag, a Flat (including running flat, or expanded flat), and it could turn out to be a dreaded expanding triangle, too. Further, various legs could be composed of contracting or expanding diagonals that will be difficult to read.

We'll do our best, but as you can see last night, the news can change things in-a-hurry so be cautious and prudent whether big news is scheduled - like the employment report - or it is a story that surprises.

Have an excellent start to the evening,

TraderJoe