ES Has Completed the Shark – 5-0 Duo

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Here’s the day chart harmonic analysis before the globex open

9-30-2013 ES D MTS

This shows that a hold below 1683.5, it has 1671.25 target for a Harmonic Pattern completion called Bullish 5-0,

this particular pattern was formed while a completed Harmonic Pattern, Bearish Shark began its retracement mode.

Here’s the same chart but showing where price opened for the globex session

9-30-2013 ES D MTS 2

As you can see price opened at the Bullish 5-0 PRZ (Potential Reversal Zone aka a Harmonic Pattern completion target zone).  So is this magic?  Crystal ball?  Did it matter whether it got to that target due to news relation or not?  No, it’s symmetrical movement derived from probabilities using harmonic rotations.  Simple.

And just because price is testing the 5-0 PRZ and just because once the completion of the pattern occurs that it’s considered bullish, does not have any guarantees that it will reject here.  It did however give me a downside target with a breakdown of support.  There’s a potential breach of the 5-0 to test the bottom of the GRZ (Golden Ratio Zone – derived from 38.2% to 61.8% fib zone), what will be key is whether the 5-0 holds as support or becomes resistance and holds.

 

The Harmonic Pattern Duo, Shark and 5-0 imply an impulsive move followed by a 50% pullback, which is still considered a shallow retracement and the ideal scenario continues in the direction of the impulsive move … but if price holds below that GRZ level 1658.75, the probability of Shark retracement mode increases with the ideal target at 1618.50.

Note there was a bullish cross as shown with the red circle, this pullback is also a validation of that cross, a hold below the GRZ implies an invalidation of that cross also.

So, 1671.25 is the initial important support target, then 1658.75 … an ability to hold above 1658.75 keeps the probability of upside bias, whereas a breakdown of 1658.75 increases the probability of downside bias with 1618.50 being the nex very important support test.

And due to Harmonic Patterns, I already have a downside target of 1564.25 to 1553.50 for another Shark PRZ.