ES Morning Update May 10th 2018

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The market keeps on grinding up this morning in what should be a 5th wave. And unless some news comes out to scare it I don't see any reason for it to sell off today. It's still in the rising blue channel of support but coming up into a tough resistance zone overhead. I don't see it getting through it on the first hit, so an ABC move down seems likely to start as early as tomorrow but might be pushed out until Monday.

Everything looks pretty good for the bulls right now, and even on the pullback to retrace maybe 50% of the move up from 2590 it would just be more bullish as it would make the right shoulder of an inverted head and shoulders pattern. The rising purple trendline points to around 2635 or so, and has a light purple falling trendline pointing to the same area. A move down into that zone next week would set the bulls up nicely.

But I'm getting ahead of myself as we haven't finished the up move yet. We can see a rising light red trendline and a falling blue trendline both pointing to around 2710, as well as the lower rising trendline in the blue channel. Plus that happens to be a double top area from 4/18, so I doubt if we get through it today. I really don't see the bulls taking it out at all on this attempt.

They are on wave 5 up and many trendlines of resistance intersecting there, so odds are low for them getting past it. However, if enough bears where to short that area and placed enough stop orders say at 2720 and above then if the bulls could just hit that first stop they could squeeze on up through it. I give it very low odds but nothing surprises me anymore in this market but the constant impossible moves... LOL. Anyway, that all I see for today... more grind until the channel breaks and started the pullback.