Wednesday’s trade gave us an additional new high at 4498, which on the hourly chart looks to have completed a small 5 waves up off the 4476.50 low from globex. It is unclear as to whether this completed a small wave 1 of the subminute wave 5 or if it is a part of the subminute wave 4. In either case a pull back should be expected. First support comes in at 4487 and then 4476.50 with the potential for a move down to 4468 to 4470. The “no break” level remains at 4438. Under either scenarios I still expect the ES to rally up into resistance at 4507 to 4526, with potential for an extended run to 4557.
August 25, 2021