Chart on Emini S&P 500 (60-min) for Tuesday July 30th 2013

I have been feeling like a broken record at times today, especially since the market has not been cooperative in giving us an immediate direction signal. But, the fact that it did not break through the 1687.50 level was quite interesting, and I have to take strong notice of this fact. So, what I have said several times today still applies:

"I am going to say this one more time . . a move over 1679.50 was the early warning that we invalidate a bigger move down in ES . . over 1681.50 invalidates the downside count we have been watching . . over 1688ES makes wave iv continuation less likely, and need to go to 1694ES and pullback hold over 1687ES to see us heading to target of 1708-1711ES as it stands now."

So, while the immediate, impulsive bearish set up we had earlier this morning was invalidated, it is still quite likely that another set up will present itself, as long as we have no break out signal for wave V. So, for now, I must still expect our lower targets for wave iv to complete around the .382 retracement in the 1662-1665ES region, at least until we see some form of break out signal. The main reason I am maintaining this perspective is because of how shallow this wave iv has been to date, and just seems to need another leg down. So, I will maintain my immediate bearishness, until the market proves otherwise.