Tuesday’s trade did see the ES move up to an additional all time high at 4542 during globex. The decline off the highs did give some support to it completing the irregular “B” wave that I have been discussing and tracking. I have labeled the charts up to the overnight high, but I am still in need of market confirmation that the “C” wave decline is underway. If this is the case the decline off the highs could be wave 1 and 2 of “C”. This then suggests the ES will begin to accelerate lower as wave 3 of “C” unfolds. Remember the expected “C” wave down should be fast and destructive in taking out support and ultimately move below the low of wave “A” at 4346 before completing The ES would need to break above 4542 to negate the downside for now. Should that occur resistance remains at 4548, 4555 to 4560 and then 4575 to 4600.
August 31, 2021