Tuesday’s trade continued to hold the ES basically in a box even though it did extend the upper end of the box to 4230 this morning. While the nature of the move off of last Monday’s highs remains correction, the ES did fail on building a 5 wave sequence off of the globex low on Thursday. This left a 3 wave structure up to today’s 4230 high, which suggests that the small 4 wave correction is still in force. If this is the case wave “c” would be unfolding off of today’s 4230 high. Fibonacci support levels have been updated on the chart. Expectations remain for the larger advance to pick up again with a move to new all time highs in the 4300 to 4400 area. Again, I’m allowing the market to tell me what its plans are and staying open as to how it intends to get there.
June 1, 2021