ES hit 4580 pre-market, drop 4535 in the morning then rallied toward 4586 just before close. Meanwhile, RTY dropped more than 2.5% from premarket high and only retraced half of that today. This is a sharp contrast compared to last 2 days, where RTY lead up. I always think RTY leads, but RTY is a wild animal and can trick people by fake movement, so as long as RTY can maintain the relative weakness compared to ES, and especially hold below today's premarket high, I tend to think this (B) wave already started.
Bad ER after close tanked both ES/NQ, will see if this can get follow through tonight/tomorrow morning. Nevertheless, I would like to see ES hit 4390~4445 range before next Tuesday. I will then plan to long from that range once I find some bottoming/reversal pattern for a run to 4650~4700 next.
However based on Sep~Oct 2020 fractal, there is another possibility that this drop will stop at the micro support range of 4470~4515 and we go for 4600~4620 next before going 4390~4445 range, the follow through next two days will be the key.
Bad ER after close tanked both ES/NQ, will see if this can get follow through tonight/tomorrow morning. Nevertheless, I would like to see ES hit 4390~4445 range before next Tuesday. I will then plan to long from that range once I find some bottoming/reversal pattern for a run to 4650~4700 next.
However based on Sep~Oct 2020 fractal, there is another possibility that this drop will stop at the micro support range of 4470~4515 and we go for 4600~4620 next before going 4390~4445 range, the follow through next two days will be the key.
Comment:
overnight it was doing low level consolidation, so it looks good for some follow through to the downside today, but if this setup fails, then very likely we have done another small abc pullback, and 4600~4620 is next.
Comment:
We are right at the top of the micro support range, needs to penetrate and get follow through today, or 4600~4620 could become immediately available target
Comment:
We seem to find some local support this morning, and beside directly above yesterday high and into 4600~4620, there is also a possibility that we just finished (a) of this (B) wave and if so next target would be around 4655~4670 range. If we can indeed hit this range today, I will be taking off some of the hedge calls added this morning around 4510~4515.
Comment:
very heavy market indeed, lower high and lower low since overnight high, will we get a trend down day and close around low?