Monday’s trade was informative for me as the ES and NQ somewhat “decoupled” as the ES dropped and the NQ rallied. I knew it could occur but I was determined to fine tune it by pinpointing what was doing it — and today it was mostly due to the rally in AAPL. But back at the ranch the ES coming into today’s session continued to carry a higher probability of dropping down to the 4218 level to finish the small correction in force off of Thursday’s high. There remained the possibility for the correction to have ended in a small failure at Friday’s 4221 low but the market did not take out the previous 4249 high and dropped again in a 5 wave pattern which, again suggests the small wave 2 correction has ended in a failure this time from 4224. The launch off of that level does give support that the ES has moved on to the next sequence higher. Resistance levels are in place to reflect the wave in progress being a 3 of 3 type move with expectations to reach Fibonacci resistance at 4267 and ultimately to continue higher making its way towards resistance at 4280 to 4300.
June 14, 2021