11/3/20087:59 PM pacific

The bias is still up. All of the movement down since Friday’s high I interpret to be corrective wave structure. That means that the short term trend is still up. This is a 15 minute ES chart that shows the probability of one more wave down before we turn up. If this thesis is correct, we should not take out today’s low at y before we move higher. Tagging Friday’s high is the initial resistance zone. If we break through that I think that the extended 5th or A-B-C thesis from earlier today become the most probable scenarios.

Following a breakout, wave iii of an extended 5th targets 10300ish. That is the primary target. Note the Fibonacci confluence on the 120 minute chart below, and recall that it is also roughly the measurement for the base of the triangle. If this forecast is incorrect, previous breakdown levels and retracement targets still apply.

11/3/20087:59 PM pacific

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