Wednesday’s trade was more volatile in the ES creating larger swings. I discuss tonight risk as it relates to trading a more volatile market. I also have made a slight adjustment to the labelling sent by a subscriber. So, I’m showing it tonight and agree with the potential and probability of the outcome. Currently I am leaving the Minor wave 4 correction as complete at yesterday’s lows. The current view remains that a minute wave 2 correction is complete or nearly so. If this is the case a minute wave 3 advance is set to kick in. Expectations would be for a push strong enough to get above 4412, 4419, and 4422. First resistance for the advance sits above at 4441 and then 4464. Additional Fibonacci levels are updated on the chart. Downside should be limited if wave 3 is ready. A break below 4391, (200 MA) should give a shot to the downside. Additional support for wave 2 comes in at 4385, 4381 and then 4365.
August 4, 2021