Steve, could you post your chart of ES futures on 4-hour time frame with a patterns in play please?

Ok, it makes sense. The full move may play out on the futures down to support at 1842 on ES. I am selling rallies and buying pullbacks on this corrective move up.

What time frame will this higher low be at?

I can see a bear flag, and a 30 point move from 1878 (the same move as from today's high and the afternoon low). That would be a retest of today's low of 1848 on the cash index. Am I correct here (I was looking at the 5-min chart?

Steve, when is either pattern considered invalid (what needs to happen to the price to invalidate either pattern)?

it is a low on the daily charts. Futures made a low of 1836.25 on March, which is about 1841 on the cash index.

A stop should go about 1 point below today's low, shouldn't it?

is 1848 on SPX cash now a higher low, and a stop would go underneath it?

So the reversal on the daily charts failed now or we are retesting the bottom? Can you tell?

Answer: Too early to tell but for now we are seeing a retest.  The intraday charts pointed to a pullback as I posted below and thus a reason to take at least partial profits on my part. 

a measured move is 75 points from today's low, and we've got 55 of them already.

REPLY: Take .618 of the measured move for a conservative initial target on the wedge which has been achieved.  It hit trend line and stopped and has yet to breakout.  Take some profits.

Steve, you made an excellent call on the bullish falling wedge this morning!

thanks for a confirmation, I was referring to the daily time frame.

Are we looking for a higher low now, not to exceed today's low?

what's the number on SPY below which there is a trade? I will enter a limit order at the close to buy below that level.

yes, I made 2 points there on 1 contract. Enough for a dinner

LoL! I like your dinner idea, I should play one of those to treat my girlfriend Did you trigger it in NinjaTrader or tradestation?

Congratulations, Matt! I saw that doji, 10 minutes is too short for me to react. It would have made about 4 ES points.

are you watching for a reversion to the mean bounce?

There is a doji, however, the risk/reward is not good: 2017.25 to 2032 (ema(9) ) on the upside versus 2017.25 down to 1992.5 on the downside. the high of the day yesterday was 2017, 2017.25 is entry point.

On TF the risk/reward is much better, however, I doubt that $rut will make it to its ema(9) at 1133.

thanks a lot, Steve and Matt!

Are there any targets (measured moves) lower into the 2000-1980s area?

Are you aware of discrepancies in price actions in the old and new contracts within this period?