In the weekly wrap I mentioned, "For the early part of next week, I'll be looking for the completion of wave 1 of 3 (blue), then a retracement for wave 2 of 3."
The overnight session hasn't shown its card but we will be relying on the wave count to provide our directional bias which remains down. On Friday we had an "inside day" on a daily chart of ES1. Inside days often lead to trending price action. So be alert to this possibility. What a trader needs to be aware of is that trend days can reverse during the same day and lead to a powerful move in the opposite direction.
Examining the current move down, the wave count is mature... meaning that we are in wave (v). Most of the decline is done; therefore, there is limited downside potential and greater risk of a countertrend move.
Best of Trading
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