The overnight session last night in the ES provided us with a clue as to the nature of the trend, and this brought about a sense that the market was indeed impulsing to the downside. This of course is dependent on the signals entering OS and staying there. This is exactly what happened and although markets made a failed rally in the morning session, it was abundantly clear that the trend was bearish and that price would eventually resume its trend. So on a market sense of view it was crap, but on an analysis point of view, it was a success even if our signals were mixed yesterday.
We had enough clues to tell us where the next days market might flow. This does not happen everyday but we need to be one step ahead as much as possible or as close as possible. The 20 month MA and the 20 day MA were important in this analysis as well as it has broken down from a long term support.
The market close today pushed our ST to the downside which puts us in SYNC with the Sentiments. With an intra-day OS signal we could expect another acceleration or impulsive day tomorrow. There is no guarantee of this, but the risk of one is high. So we need to be on the right side of this trade. The futures market has also closed in OS, therefore giving us more conviction of trading short.
Looking at the daily chart we also hit a low on our Gann angle. Again, price is aware and respecting this line / angle.
SEN: Bearish
ST: DOWN
PA: DOWN
UPDATE:
I forgot to add that a bullish count here has the 5th wave failing to make a new low last week and the impulsive move up from that low is a 1st wave or a WAVE-A then pull back currently is a Wave B or 2. The next price pattern should clear some of these options up or cancel them.
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