We are in a bull flag.
However, we have not yet left the bull flag and sometimes bull flags make people a bit too bullish, and sometimes bull flags break down. This may be one of those times. We will find out soon enough.
Adding to the mystery is the sloppy, overlapping mess that is the correction $ES has had. When we see that, we tend to place more weight on interpreting the structure as merely corrective, rather than impulsive. And yet, sometimes the market likes to lure us into such thinking. There is a way to count the move off the highs on $ES impulsively, and I thought I would share it with you, as I haven’t had a public chart to post for a bit.
This count would involve a leading diagonal with a deep overthrow for wave 1, followed by a wave 2 that may have ended into the close. If this count is correct, we should see a swift move to the downside next week.
Sleep tight bulls (no but really, I hope everyone has a nice weekend).
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