Tuesday, August 25, 2009

A test of the highs...

Sorry I'm so late on getting this post up. Family responsibilities and little sleep kept me away. Here's the quick and dirty on what I want to point out:

- my minor wave 4/5s that I had listed before appear to have been put in during the overnight market Sunday-Monday, and so we went straight to the larger wave 3 completion yesterday at the highs right at my target.

- Yesterday's move down did sport an impulsive look to it. To keep the price action bullish, the wave 4 should not have moved lower than 1018. During last night's price action, ES moved right to that zone before reversing.

- Today's wave 5 can be any of the following:
- A wave 5 failure at the .786 retracement
- A double top
- A slightly higher high (shouldn't go over 1040).

If price breaks above 1040, then there is a different pattern in place, I will look for resistance in the 1050-1060 area.


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