ES-F: Intraday Update

here is the updated 3600 tick chart with typical Fibonacci extensions for w.C circle terminal of w. iv circle....

and the updated 240 min chart level. Bias remains targeting the .382 level for a possible turn lower.

Best of Trading

The Market Pulse

Above is the chart that I left readers with in my weekly video edition of Heard On The Street
Today I expected a rally in the emini S&P futures and that's what we got.. By the end of the day, w.iii had completed and w.iv is underway.

Looking at the daily continuation and the March contracts, the momentum indicators seem to indicate that price may continue lower in the short term... i.e. the momentum indicator for the March contract may be breaking the established trendline signaling a further decline and the momentum indicator for the continuation contract could decline further before reaching trendline support. Both charts are consistent in calling for lower prices. If my view is correct, price should fall to the .382 -.50 retracement level, a common Fibonacci relationship for fourth wave retracements. This interpretation is invalidated if price prints below w.i (130625).

Once w.iv of w.(v) completes, I'll be looking for w.v to terminate between 1326.75 - 1329.25. It will be interesting to see if this marks the end of the rally that began in July 2010 or if the market will push higher to the 1341-1348 areas that I mentioned in my weekly video edition of Heard On The Street

I hope you found this edition of the Market Pulse helpful.

Best of Trading