ES - Weekly / 1C Underway E-MINI S&P 500 FUTURES (CONTINUOUS: CURRENT CONTRACT IN FRONT) CME_MINI:ES1! HK_L61 We are witnessing the Larger 1/5 correction within the "C" Leg. The Extensions reside @ 4426 and 4190. Retracements should be limited to the 8/13 EMAs with the 21 EMA now acting as Support unit it does not. "C" moved are generally quick and outsized. There will be a Larger Retracrement when 2/5 begins, not until. The FED has increased the probability of a 25 BPS Hike from 100% - to 86.1% Probability of a 25-50 BPS Hike. ________________________________________________________ The Transports confirmed the Dow Theory Sell Signal as I indicated this would cause the DOW to correct. Value Line Index gave us the warning the ES would see a sharp decline to follow. NQ has been seeing outsized selling in 711s. TNX should tap or exceed 2%, perhaps 2.12% prior to a Retracement. TLT should trade the 139s and possibly the 134s. For time the "bottom" should not be until Mid- MArch when the FED backs down from 50 BPS to 25 BOS and becomes less hawkish and far more verbose as to concerns for the Overall "Economic Health" - this will be the time to take the BUYs and ride them for a violent run ti new all time Highs. __________________________________________________________ By then, the ES should have filled its Gao at 4010. It is Day by Day for now, with further updates to follow. Trade SAfe everyone - HK