Years ago, when I was still in college, I was assigned a special project to program the board game Mastermind. All excited, I went to work right away and completed the project within a week. Of course, I did it over the Chrismas break because that's the sort of geek I was back then. It then occurred to me that I can give my program an 'edge' over the other students' versions of the same program. And so I embarked on building a special 'cheating' module; if the player manages to guess the code from the clues he's already been given, the program automatically picks another code that's compatible with those clues. I was more proud of the 'cheating' module than the program itself.
And that's what this f***** market strives to do all the time; cheat. In yesterday's write-up, I thought I had the wave structure finally 'decoded', but the price action that unfolded overnight invalidated the interpretation depicted in chart 1 below. This leaves us with two other options, as far as I can see. These are shown in charts 2 and 3. From the looks of it, that 2145 area (weekly vPOC) will likely be tested shortly after the open, unless the market's 'cheating module' decides to make a fool out of me. Again!
Chart 1. ES - U6 - Code invalid!!!
Chart 2. ES U6 - If this interpretation is correct, wave 4 has more downside.
Chart 3. ES U6 - If this interpretation is correct, wave 4 is done, but the 2145 area will be retested, as indicated by the potential SHARK harmonic. Look to cover the
short positions near 2145-46.
Chart 4. ES U6 - During this fourth wave 'profit taker', the market should test the bulls' resolve by pulling back to the weekly vPOC (2145-46).
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