Monday, 21 June 2010

13:14 BST ES Update

This count on ES is the alternative count shown on Friday for this contract. It fits in with the possible count for SPX which I showed earlier, placing us in a 5th wave, which, on counts 1, (possibly) 2, 3 and 4, could put us at an important top (as opposed to the more bullish counts which place us at the start of a 5th wave which has the potential to go much higher):

ES 5 min chart:

Its possible that where I have 3 of (5) is actually the end of (5), but giving the benefit of the doubt to the upside, the action since that high may only be wave 4 of (5), so another high to come.

If this count is correct, we could end up with a gap and crap on the cash markets, but we'll have to wait and see.