Room for lower if needed
By
The market ended the day lower, showing nothing reliable enough yet to assume that a bottom to this pullback off last week's high has completed yet. As mentioned this morning, based on the depth of this pullback, an ending diagonal structure rather than a standard impulse off the September low is now a better fit.
Under the ending diagonal count for wave c of (y), last week's high would count as the top of wave 3 of the ED with price currently pulling back in wave 4. That gives price room for a little lower before wave 4 should complete, with 2911 - 2906 on the ES chart as main support. If price is going to stretch lower tomorrow in order to test that support, the bounce off today's low can easily be a micro wave 2 of (C) within wave 4.
Otherwise, a break above the pre-market high at 2930.25 ES is needed at a minimum to start considering a bottom already in place for wave 4 of the ED, after which 2957 becomes the target for wave 5 of c.
