Looks like the bears are gonna continue the party. Yesterday in my haste to get an update out before trick-or-treating with the kiddies, I forgot to post the more bearish nested 1-2 i-ii option as mentioned in the chat room (4:25). I suggested a gap and go down, which obviously now apparently is the case with ES down -23+ points.
The 13 day EMA at 1237 may play a role here today since it has supported all pullbacks of the 10/4 rally since 10/7.
But I will also refer back to the chart labeled "repeat", which may serve as an overall guide. Notice in 2010, the market just slammed ride through all the MAs.
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| ES |
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| 5 MIN - BEAR |
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| REPEAT |
Based on the counts I have been tracking, the bullish case may have to take a backseat at the moment.
My longer term alternate may have to come to the forefront. The chart above is the two potential paths I see for this path.
