Here is the updated medium term chart in ES:




Lack of at least a bounce here following Friday's bullish 3D right into such an area would indicate that something more serious to the downside might be brewing here. Breaking the rising TL from August low (thick blue line) would only confirm this.

Did you see the latest? The biggest hawk at the Fed, the only rational one there, Hoenig, said today QE3 is possible if things don't pick up to the Fed's liking. What does that tell one about downside?

Ooooooooh, 2.50 points of 'profit taking' into the cash close. Wow.

Wow, that was some sell off into the futures close, 3.75 points. That may really portend something ominous...

And yet ES has clear problems with overcoming these lines at 1.128. Now bulls will have an additional hurdle in a form of .886 1.000 ABCD:

The ABCD above was taken out but just by 1 tick and just to the lines again. This may become serious if bulls don't address it soon:

Let's see how the bulls will now handle this small (comparing to preceding move) bullish flat ABCD:

Well - not even to the Kane Zone and that's a clue:

... but bulls quickly showed up at a 1.46 DT ABCD in what may be seen as retest from above of this upper Schiff ML:

short.. will post later stops break even

I can't refrain myself from quoting here a fragment of famous Polish poem for children - "The Locomotive" by Julian Tuwim:

"...

First a toot!
Then a hoot!
Steam is churning,
Wheels are turning!

More slowly - than turtles - with freight - on their - backs,
The drowsy - steam engine - sets off - down the tracks.
She chugs and she tugs at her wagons with strain,
As wheel after wheel slowly turns on the train.
She doubles her effort and quickens her pace,
And rambles and scrambles to keep up the race.

Oh whither, oh whither? go forward at will,
And chug along over the bridge, up the hill,
Through mountains and tunnels and meadows and woods,
Now hurry, now hurry, deliver your goods.

Keep up your tempo, now push along, push along,
Chug along, tug along, tug along, chug along
Lightly and sprightly she carries her freight
Like a ping-pong ball bouncing without any weight,
Not heavy equipment exhausted to death,
But a little tin toy, just a light puff of breath.

..."

Have a great weekend all!