Wednesday 6/2/10 wrap up

I was commenting in the HOB chat room earlier today that the last few days have been a mish mash and would stay in cash until something I recognize happens. Well, it happened this afternoon.  Very clear impulsive pattern in process since the overnight lows in the ES, still needs a series of 4th and 5th waves to complete but I believe that is on the way.  So the count looks as follows:

The low of Tuesday 5/25 remains as a significant longer term turning point and we've had two sets of waves 1 and 2 since, with the most recent wave2 ending at last night's low.  By this count we are now in a 3rd of a 3rd wave and, if true, should see some upside acceleration.  One price level area to watch is the trend line down from the high of 4/26, it's right now at about ES 1120.50 and will be at 1117.00 by close tomorrow.  That should provide key resistance and if overcome could be a point of acceleration.

Finally, the Buy/Sell vindicator flirted with a Sell line crossover at the end of trading yesterday into this morning, but the Buy line retained ascendancy and the indicator remains in buy mode.

I'm planning to go long ES on a pullback, and might make that move overnight.  If I do I'll post on the "Current Position" section of this blog.