ES_F : Corrective or Impulsive Behavior?

Identifying the wave pattern enclosed within the oval will provide you with the knowledge and confidence to act with minimal risk.

For the purpose of this training exercise, this is a 2-day chart. Please identify the move as either corrective or impulsive.


If you identified the pattern as a 3-wave, counter trend advance, then IMO, that is a correct interpretation. While this doesn't guarantee that a more complex corrective pattern will not develop, it does provide us with an initial bias to the downside.

I've taken the liberty to apply some possible wave labels to illustrate my personal view of the market. Obviously, I'm wrong on any recovery high. A daily close below 1349.50 would be encouraging to the bearish view. However, only a 5-wave decline from 1375 would confirm the intermediate bearish view. 

Should the market cooperate, I'm looking eventually for prints below the w.1 or w.(A) low of 1262. 

Best of Trading

======================================================================

ElliottwaveLive is not an investment advisory service or broker dealer. None of its contributors are registered investment advisors, licensed stock brokers or CTA's. The author may hold short term and long term positions in the futures, stocks and ETF's discussed herein. The author may also trade around those positions which may be in direct conflict with your positions. Complete trade disclosures of the contributor’s holdings are posted at www.elliottwavelive.blogspot.com. See Trader Disclosure. 


Trade at your own risk. The blog site, Newsletter and all other information, material and content accessible from this Site (collectively, the "Content")  provided herein provides the context for market analysis with respect to a market's, a security or a commodity's general position utilizing the Elliott Wave Principle. The Content contained herein are the opinion and general comments of the author and is based upon information that Mr. Sinibaldi considers reliable but neither ElliottWaveLive nor he warrants it's completeness or accuracy and it should not be relied upon as such. Mr. Sinibaldi or ElliottWaveLive (collectively, referred to as “EWL”) are not under any obligation to update or correct any content provided on this website. Any statements and or opinions are subject to change without notice. The content and comments contained herein neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person's investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. 


A more and comprehensive Risk Disclaimer and Disclosure Statements is available within the left margin of this blog site.