One Final $ES Observation For the Night

Yeah, I say that now, but maybe something will come up later, lol.

My daughter made me some really strong coffee and you can see the results haha

Since $TSLA is at least primed for a 3rd wave, $BABA has already given me its third wave, and some of the others I track are also prepped in a similar way, let’s take the 1-2 seriously for the moment. One thing that bugged me during the dump was the lack of an obvious fib relationship for where we stopped. We stopped between a lot of fib relationships that I could see while the drama was unfolding and that is a little weird.

But, taking some time now that things have slowed down, I found an interesting fib relationship. If this is a corrective drop, such as a 1-2, it’s ideal to see a 1:1 relationship between “a” and “c.” And furthermore, if we use a contracting triangle after all, we get a perfect fib relationship right where we puked to.

ES

This would imply that the drop could be done, and furthermore, that the next rally would be very steep, overtaking the high of green 1 somewhat quickly, I would expect. If the CPI print shocks to the deflation=Fed dovish side of things, I could see a sharp reversal of this drop. So, the level to watch is 4013.50. Let’s see if that sticks.


This has sucked, I freely admit. There’s a lot of uncertainty, everywhere. But, that’s what market turns are necessarily like. If we get a good rally that looks and feels like a 3, and if many of the instruments I track also confirm this, we will have far more confidence about roughly where we’re at in the market for many months ahead.


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