The tendency towards whipsaws in the Trend/Osc system has been it's weakness, and the plan to use Vindicator signals to enhance the system worked well in this case. With the 30 minute V Stoch at overbought levels on Friday it was a fair bet that action on any buy signal off the Trend/Osc should be delayed pending a down turn today, which was exactly the right read. Currently the 30 minute V Stoch is drifting down towards oversold territory but is not there yet. Interestingly the Sell line in the Buy/Sell Vindicator started showing signs of life towards the close.
Current preferred Elliott count:
There is a bullish alternate still to be considered, hourly chart looks like this:
There is a problem with this count, and that is defining the action of last Wednesday through Friday. To fit Elliott rules that period is best labeled as a 4th and 5th wave, but the 4th is obviously not a flat and can't be a zig zag, so it has to be a 5 wave triangle (wedge). But to get that out of the pattern is very awkward as can be seen on a 5 minute chart:
Which is why the pattern for that period is best interpreted as a flat and thus why the bearish count is preferred.
Still holding short ES from 1085.00 with S&R currently at 1070.50.
