10 MinHere is a close up of what the flat may look like or if wave 4 blue is in progress. Should 1320 hold, that structure is viewed as a running flat.
Pre Market
ESES appears to be signaling a dip at the open. One count above supports the wave 5 extension option I presented last night. However, the alternate options are wave 3 of 5 topped and a 4th is in progress or this is the last leg of a 4, which formed a flat. I'm thinking the later may be the case given the wedging pattern forming on ES.
Below is my primary count. I was expecting a tiny push higher to complete 3, which still may happen but we must consider the flat option for red 4.
If it is a flat, I believe as I mentioned last night, 1315-1320 will be levels to watch as a potential support area for it.
I have a red horizontal line which marks wave 1 of 5 at 1308.86, which coincidentally is practically the same level for wave 1 red of 3 blue. Should a dip be in progress for wave 4, this line should not be breached. If it does, I believe it may be signaling the end of this leg up that started back at the end of Nov 2010.
Below is my primary count. I was expecting a tiny push higher to complete 3, which still may happen but we must consider the flat option for red 4.
If it is a flat, I believe as I mentioned last night, 1315-1320 will be levels to watch as a potential support area for it.
I have a red horizontal line which marks wave 1 of 5 at 1308.86, which coincidentally is practically the same level for wave 1 red of 3 blue. Should a dip be in progress for wave 4, this line should not be breached. If it does, I believe it may be signaling the end of this leg up that started back at the end of Nov 2010.
Much can change in the next hour and a half in ES so just things to think about.
