Welcome to the Meat Grinder

Today didn't resolve much concerning the corrective mess we have been tracking lately. ES continues to chew up traders on the smaller timeframes and burn option premium. We were able to catch a small short scalp in the trading room today, but otherwise there is still no confident setup in either direction for a swing trade. At this time I have to favor the running triangle scenario, in which price would currently be in the d-wave targeting 1682 - 1679. From there a small bounce higher to the upper trendline of the small trend channel in wave e would complete the B-wave triangle and setup a c-wave down to 1660 - 1645. Otherwise, as long as 1684.50 holds, this can continue grinding sideways in an ugly fashion. Resistance above if price starts to rally is 1697.50 followed by 1701.

Garrett Patten is a senior analyst at ElliottWaveTrader covering both U.S. and international equity indices as well as stocks.