The head and shoulders pattern that may be playing out was brought up in the chat room. This is a chart I say to keep in mind.Perhaps it will succeed on 4th try or perhaps not. Just something to think about...
Pre Market
ES is approaching 78.6% retracement. Odds have decreased that this may be a wave 2 bounce given that a wave 4 flat is on the table. Wave 2 has not been ruled out yet of course, but the odds have diminished.
As suspected last night, copper futures put in a new high and a bull cross occurred in MACD.However, keep in mind, as bullish as the open may appear to be, this bounce was expected if one were following the April topping pattern as I have over the past several days. My primary count has us working on a 5th wave up to a new high, however, I'm watching this in case Apr plays out again.
So far, the market is mimicking the Apr top to a 'T'. Today's candle may match that of April 29, orange marker.The difference between the open and close for that day was 14.48 pts and the difference between the high and low was 16.06.
The retracement was a pretty steep one as well. The bounce retraced the initial decline approximately 73%. Should this repeat, we may see a test of 1295 and that's that.
We'll see....
