ES Morning Update August 2nd 2017

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Not much more to add that hasn't already been said.  The futures still look too me like they are in a B wave up from the A wave down low last Thursday around 2457, and this whole ABC pattern is either a wave 4 down with some wave 5 up yet to come... which would take us to new highs, or the high is already in and we are starting the next series of waves down.  Either wave a C wave down (which should hit the 2450 area of support) should be coming soon.  That red rising trendline has be saving the bulls all week but is should break soon.  We know the market is weak as Apple gained $10 afterhours from good earnings and the futures are barely up at all.  If this market was a strong one we'd have seen a bigger move up reflected in the futures of the S&P500 and Nasdaq for sure.  So while I'm expecting some more follow through on the upside for the futures today I'm not expecting much.

Afterhours in the DOW I saw a "possible" FP of 22,025 show up.  I say it's possible fake print as it could have been a reaction to Apple and therefore be a real print.  We know the bulls want to hit that magical 22,000 level so today would be a great day for them to do it.  Anyway, I still think it's a good idea to average into shorts here as the risk/reward of a big move up versus big move down seems heavily in favor of the bears here.  While I don't know if there's still going to be another new all time I do think there will be a pullback first... which could turn into a lot more and even mark the all time high already.  We just won't know until it first gets started moving down.  We could still get a little high and closer to 2500, like maybe 2485 I guess?  But again, the reward of the move down is greater then the risk of a huge move up in my view.