ES_F Preferred Wave Count

My preferred count. Rally from w.iii circle, (1299.25) may be complete. IMO, the depth of the corrective move to w.iv circle and time factors seem to indicate that a meaning full rally will not materialize until further selling is seen. Breaks above 1334.25 would have be reassessing.


Best of Trading

ES_F : Follow Up

On May 25, 2012 I described a corrective pattern that I felt would possibly fool some traders. Read that commentary here

Above is the chart that I left readers with. As you can see price has now reached a new high that may have completed the corrective pattern that I spoke of.  

As of the time of this post, the market seems to have made a small 5 wave decline from the top. There are two confluent zones at 1326 and 1327.75 that I will be watching for possible areas to sell into. Should the market continue to subdivide and break below 1321.75, before hitting the described targets, the possibility exists that a more complex correction may be unfolding or the current wave is not completed. 

Either way it appears the market is heading lower. 

My Trade Plan for today.....

There are several ways to count the price structure from w. (b) 1294. Regardless, IMO, the pattern is clearly corrective. Momentum, not shown, is diverging with price. I'm not getting tricked by the current move down. The floor is LONG and looking to attract buyers. As such, I believe that we'll see another up sequence before the pattern fails.

Let's see if I'm right.

Best of Trading