This may be the count. Sitting right at the 20 MA now too.
EOD Update
They say it's not the news one should worry about when interpreting the markets but what the reaction is to the news. So far the reaction to Alcoa and Japan is indicating a lower market ahead. How far is the question.
With the wave count uncertain (Is it a wave 4? If so, what degree? Is it a wave 2 of 5? Is it the beginning of a larger correction to come?) probably better to focus on potential support levels.
Wondering if ES will find a bottom at the intersection of the old descending trendline (green) and the trendline (blue) potentially connecting the shoulders of a possible inverted head and shoulders. This sits right around at 1305.
As for cash, perhaps the 21 day SMA will provide that level support at 1309 and change. We shall see.
