Wednesday’s trade was initially revealing but by the afternoon became extremely revealing! Initially, the ES appeared to be finished with the corrective sequence I was tracking and had begun the next 5 wave sequence up — HA – The best laid plans were promptly rejected by the market as the sellers caught some wind and dropped the ES initially to 4225 and started to rally a bit. Once we came within earshot of the FOMC announcement trading crept slowly – on the initial announcement the seller bombs hit and knocked the ES down to 4190. It broke through levels that I had discussed shouldn’t be crossed if the market was intending to rally towards new highs – That brought several alternatives to the front, but trading what was in front of me took priority. After the bell I got the opportunity to see what took place — I have revised the labelling to continue to include a stronger upside finish to the long term advance. Also, because of today’s trade I have begun to discuss the potential that the highs are in for now and the next Primary wave 4 correction is underway. I’ve included Fibonacci levels for both upside and downside and where breaks would occur to negate either count.
June 16, 2021