Friday’s trade was in line with analysis presented last week in that the ES did continue to push to resistance levels consistent with a corrective a-b-c bounce higher. The Elliott labelling would be either a wave 2 or a ‘b’ wave. While both remain equal on the probability scale, the market may hold steady and move on perception of what the pundits feel about the outcome of the Jackson Hole FED meetings that will be held on Thursday and Friday. Friday being the news conference with Chairman Powell. Back at the ranch the current count remains the same in that the high at 4476.50 did complete all of the advancing sequences up to and including SuperCycle wave 3. That still puts the ES in the beginning stages of a SuperCycle degree wave 4 and to take it down one degree a Cycle degree wave A and within that a Primary wave A and in turn an Intermediate wave A. Ok, to the point, the current labelling can also be suggesting 3 waves down off the 4476.50 high are complete which raises the potential for an irregular ‘B’ taking the ES to new all time highs in the zone that just keeps coming up at 4506 to 4525. Tonights updates covers this potential in greater detail and should it be the case the expected move thereafter.
August 22, 2021