Don't let the reference to the Elvis lyric throw you. Things are working out OK, so far, on the ES 2-hr with the potential contracting diagonal lower. There have been no invalidations at this point in time.
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| ES Futures - 2 Hr - 'Potential' Expanding Diagonal |
None-the-less, there are five things to watch: 1) the high of wave 2 - please use OHLC bars for that, but I would get very, very suspicious above the current high of wave 4, 2) watch the up channel of the a-b-c zigzag to that wave 4. A significant breakdown below it, and back-test that failed, would likely indicate more lower, 3) that is the reason to watch the channel. If price regains the channel upward, it 'might' impulse. We are not there yet. 4) watch the EWO/AO as - while it is red - it should turn below zero again for this count to play out, and finally, 5) watch for more significant downward overlaps of the 'a' wave of that 4th wave.
Have an excellent start to your "no forward guidance" day. Warsh may not give any. Would you consider the above?!
A 'closer in' 15-min wave count is included below, as an "extra free bonus". Lol.
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| ES/SPY (CFD) - 15 Min - Local Count Currently |
TraderJoe
