Looking at the Elliott counts after lunch I noticed that Minute Wave 5 and thus Minor Wave 3 can be better counted as complete at last Thursday's high than as still in progress - a nice little channel can be drawn around the move up from the Jan 30 low into that high. That channel is broken by the price action late last Thursday and into Friday. Further, the move down into the Friday low has three legs, and the move up from there into today's high can also be counted as a three. We may well have already seen the "a" and "b" legs of a 3-3-5 flat formation. Minor Wave 2 was a zig zag, so this idea fits in terms of alternation. If all this is correct, the ES is in the "c" leg of that correction. A 1st target would be the .236 retrace of Minor W3 at 1315.75.One final note, a sell signal was issued by the Dynamic Oscillator system on the SPX earlier this PM and if the ES stays below 1342 for the next six minutes there will be a sell signal there as well. (currently 1:54 PM CST)
