ES Morning Update May 9th 2018

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This mornings' move up certainly looks like a 5th wave to me, so at some point today I'd think this rally up will end and we'll start back down tomorrow. Obviously we need to break the lower rising trendline in the blue channel but we might not do that today? As for picking the ending top of this wave 5 up... that's hard too say. Some will look to 2700 or so, and it could get there, but I tend to think that if everyone see's the same level it will either fall short of it or go past it. In this case I think we'll fall short of it.

I will add that it's common for the regular trading session market to revisit the highs made in the premarket, so keep that in mind if we open and start dropping right away as odds favor a bounce back up at some point in the day. My thoughts are that we'll drop some early in the day and ride that lower blue trendline of the rising channel back up later in the day. That's probably the move that will fool the most as early bears short the open and throw in the towel on the late rally back up. Bulls will be long into tomorrow and that's the perfect time to breakdown and start move lower tomorrow. That's all I see for today gang. Basically I see a reversal coming today or tomorrow.