Taking out the prior high on $ES kills the bear count, but that doesn’t necessarily imply that we should get super bullish; rather, it just means that we need to start counting to the downside from scratch again if that’s where we’re headed.
So, I am looking for minor (green) B to come in at some point. I would expect minute (blue) c to have a fib relationship with minute (blue) a. We came just a few points within such a fib relationship this morning (the 23.6%), so it is possible that it’s in now.
Confirmation of this will require that we see some actual selling that takes us lower in price, principally below minute (blue) b. If, instead, we find support in the little orange box then the rally from minute (blue) b is more likely just 1 and 2 of minute (blue) c, implying that we may go to one of the higher fibs. So, the key here is taking out yesterday’s lows.
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