Tuesday’s trade in the ES gave us the “trifecta” in movements. Allow me to explain. I left off yesterday with “The market remains in a “stair stepping” fashion as it completes multiple degree 5th waves on a subminute, minute, minor, Intermediate, and Primary degree. The Fibonacci extensions for Minor wave 5 continue to suggest the ES will move above 4400 and 4500 before completing between 4575 and 4670. This is based on the most common Fibonacci relationships between 3rd and 5th waves.” The ES has held within current expectations. We did get a new high at 4383.75 and I can count 5 waves up on a subminute level, but I am going to hold off on doing that until the market gives us more data as to direction and intensity. So, that leaves us with an equal probability of additional rally to new highs and that remains in the picture unless or until a break below 4322 occurs. Should that level be broken with follow through it would likely negate new highs for now and give a bit stronger support to the 4383 high being the completion point for some of the larger advance sequences. Resistance levels remain in force as shown on the chart.
July 13, 2021