ES Morning Update October 8th 2018

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The futures are down a little this morning, which is a surprise to me as I kinda thought we'd see some short squeeze happen today from the Brett Kavanaugh win. But that's not the case as the market doesn't seem to care. I still see a bounce coming, as long as the SPY/SPX makes a higher low today compared to Fridays low (if not, then I'll look for Tuesday to put in a higher low).   Overall though I'm expecting a few days of chop to upside before the next leg down in the market. It might not start until this Thursday or Friday?

This early in the move down I'd find it odd and rare to see it continue down without a short squeeze of some degree. But maybe there's not many bears short and/or too many waiting at higher levels to short? Tough call here on the short term but the medium term still points down into the end of this month. I'll just say the short term most charts are oversold due for a nice bounce anytime now.

But there's no positive divergence so a lower low is certainly likely after the bounce. The medium term is still very overbought, again suggesting much more down yet to come. I'll keep this update short and end it here as I'll need to watch the action today to get a better feel for when this bounce is coming, and how high it's going to be.   Patience.