Thursday’s trade produced some stronger buying in the ES once the market broke cleanly above resistance at 4442, which had held the rally over the last couple of sessions. The market did reach next resistance at 4456 and that held into the close. However, it does feel and look that additional upside will be needed before I can market minute wave 3 as complete. I’m lookin for next resistance at 4465 to contain and complete minute wave 3 with a minute 4th wave correction beginning. First support for the correction will be the moving averages which at this point are at 4448, 4445, 4437 to 4430. I initially will be looking for th 4430 to likely complete the move. Once complete though, that leaves just a minute wave 5 up to complete advances on Minor, Intermediate, Primary and Cycle degree levels. Remember the correction coming will be correcting not only the advance off of the March 2020 lows but also the advance that began off the 2009 lows as well. Shorter term, I still expect the ES to reach above 4500 before the larger correction begins.
August 12, 2021