Monday’s trade was surprising in that the ES along with the other markets raced higher with the S&P and the NASDAQ pushing to new all time highs early in the U.S. session. Initially the thought was the markets would be slow to range bound as traders took a wait and see posture towards the FED’s Jackson Hole meetings scheduled this week with the press conference being held on Friday at 10 AM EDT. I have updated the Elliott labelling to reflect the Minor wave ‘a’ down and the internals for the ‘b’ wave still in progress. Thus far the larger ‘b’ wave in progress Fibonacci resistance at 4486 before pulling back into the close. Expectations remain for the “irregular” B wave to continue higher reaching the zone that begins at 4506 to 4507, with stronger resistance to complete the sequence starting at 4520, 4525, and 4532. There is additional overlap between 4520 to 4532 which continues to give support to these levels being reached and likely completing the move.
August 23, 2021