ES Morning Update August 7th 2019

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Markets are down this morning, after a nice strong bounce yesterday. I don't think the bulls are done yet on this move up but there's a lot of resistance overhead so it might be a grind fest higher and not your typical gap up and squeeze move. So today might be a choppy sideways day with some downside and some upside but considering the depth of the recent drop over the past several days I don't see another big plunge coming anytime soon.

Bulls are fighters as we all know and at worst will just hold the market in place long enough for charts to become bullish again and then make a run higher. On a wave count we might have gotten a wave 1 up yesterday of some degree and will have a wave 2 down or sideways today... which leaves 3 up for tomorrow or Friday I guess. Just speculation at this point based on how fast and far the recent drop went, thus getting the market quite oversold on the short term. Bounces are a normal part of any drop as we all know, so we shouldn't be shocked if we retrace half the move down (or more) in the coming days. Not much else to add here so I'll just keep this update short and end it here. Have a great Wednesday.