Wednesday’s trade resembled Tuesday’s very closely. I am still leaving open if current highs have completed the larger advancing sequences. The pattern in progress off of yesterday’s 4383.75 high continues to suggest two scenarios – The first being that off of the 4383.75 high the ES has started lower in a 5 wave decline. If this is the case, waves 1 and 2 are likely complete with wave 3 down underway. Again, this would suggest the wave 3 will begin to accelerate to the downside breaking support at 4355 to 4349 and again at 4341 to 4335 before finding support to complete at 4327 to 4322 before a wave 4 bounce begins. The second scenario is very similar in that the ES would be forming an a-b-c correction off of the 4383.75 high. If this is the case waves A dn B are complete with the market in the beginning stages of the wave C decline. Support at 4349 could complete the move, but more likely the move would find stronger support at 4335 to 4341 to complete and allow the next advancing sequence to begin.
July 14, 2021