Markets moved lower today and ES seems to have made a 5 wave diagonal wave pattern down from its Oct 5 high. As for the SPX the waves are harder to countbut im assuming that the sideways trend from midday to end of day is a hint of more continuation downward to come and possibly end an ABC or just a wave A of C.
When we cannot count waves or patterns properly its always good to know that our indicators are there to give us a more precise signal. In this case a FIB. 100% move of wave A is close at hand at 1427 area, and we have an oversold 60min Stoch. Our daily is bearish looking so in order for it to remain bearish, the 60min stoch should move higher and reset itself for a cross down without affecting the dailys current bearish pattern (Meaning stochastics must not cross up). Also note that price have touched the lower BB indicator.
Conclusion: your daily is bearish and it will be your main trend until the weekly prints at the end of the week to give you a clue. Therefore any cross up is considered temporary for the 60min charts and if your looking to enter a short position it will be when the 60min stoch. starts to turn back down on a crossover. No long position should be placed until a main trend turns bullish.
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