Wednesday’s trade resembed Tuesday’s trade in that the ES moved to session highs early and dropped quickly to session lows before spending the balance of the session moving higher again. I have update the labelling to show that the ES is also tracing out a double a-b-c structure to complete minute wave 4. I’ve left open the completion point for the second wave “c” as there remains potential for a stronger decline to pick up again. However, I’m leaving that in the alternate position for now and feel more confident that the minute wave 4 correction is complete at today’s low. This then suggests that minute wave 5 of minor wave 5 of intermediate wave 5 is now underway. Expectations then would be for the market to break above 4230 without much hesitation and begin to head for new highs above 4238. I have included Fibonacci extensions which put some parameters on where 5 will find resistance and where completion levels begin to come in.
June 3, 2021