Friday’s trade did not see any follow thru to the downside after reaching support at 4369 during Globex. As discussed on Thursday’s update first support for the ES to complete the Minor wave 4 correction was at the level where wave ‘C’ would be equal in length to wave ‘A’ and that was at 4369. The subsequent rally off that low produced enough momentum to bring the market back above 4400 before dropping lower into the close. Sunday’s globex session is starting with a move higher and as I write this the market is heading towards resistance at 4409. I need to keep the potential for a turn lower with a move moving below 4369 and below wave ‘A’ at 4364.75. Additional support starts at 4355, 4347,and 4334. A break above 4422.75 would give strong support to the Minor wave 4 correction being complete and the Minor wave 5 advance being underway. Resistance for Minor wave 5 comes in at 4433, 4452, and 4472. Additional resistance that could signal the completion of Minor wave 5 and in turn the balance of the advancing sequences comes in at 4499 to 4507 and 4534 is where Minor wave 5 would be equal to Minor wave 3.
August 1, 2021