Thursday’s trade in the ES continued to have an upward bias as the current minute wave 3 continued to subdivide. The last hour so the push I needed to see to give some confirmation as to upside intentions. The ES did push to a slight new all time high at 4422.75 at the close. This gave much needed support to the rally continuing, but I would be remiss if I didn’t include the economic figure many are hanging their hat(s) on when it comes to direction. Tomorrow’s unemployment statistics will more than likely give us the final piece of information. If the market rejects the number I would expect a severe reaction from the swarm of sellers hitting the ES. Again if this is the case it would likely cause me to move the minute wave 1 label to today’s highs, with any serious selling being a part or all of a minute wave 2 correction. If the number is better received by the market I would expect a rush to buy pushing the ES to additional new highs and a run towards resistance at 4427, 4432, and 4442. Additional resistance comes in at 4455, 4464 and then 4475. Downside support remains at 4412 to 4410, 4405 to 4393, 4387 to 4382 and then 4365. A break below 4365 drops support to 4351, 4343, and then 4329.
August 5, 2021