Alternate #1
Daily
Daily
Hourly
Alternate #2
Daily
Daily
Hourly
At this point Alternate #2 is hanging by a thread and will most likely be eliminated next week. In Alternate #2 a very significant top is assumed to have been established with the 1408.00 high of last Monday. This would mark the peak of a B wave in a 3-3-5 flat dating back to the highs in this area of last May. A Major Wave C should thus now be in progress. As such it should generate a strong impulsive structure to the downside. Instead, to this point we've had a somewhat choppy and very corrective looking sell off characterized by lots of wave overlaps. Further, the ES came within a whisker of confirming an upside reversal at Friday's close. On the hourly chart it put in a positive divergence on the Dynamic Oscillator as well as the RSI, and closed right on the down trend line that delineates the sell off. A close above that down trend line will confirm a reversal.
A rally above ES 1418 will be the trigger that eliminates Alternate #2.
