Thursday’s trade was profitable for swing traders, day traders and everything in between. The ES continues to move ahead within the framework of a minute wave 5 advance. Within wave 5 it appears that sub minute waves 1 and 2 are complete with sub minute wave 3 also subdividing and needing a finishing 5th wave up. Resistance at 4269 should be expected to hold before a minute wave 4 correction begins. At this juncture I would not be looking for a “serious” decline within wave 4 – support sits just below at the 4250 area. Expectations remain for a minute 5th wave advance to reach next resistance at 4286 to 4305 to complete the 5 wave sequences on the minute, minor, Intermediate levels and on the Primary level a wave 3 advance. The Primary degree 3rd wave advance began in 2008. The expected Primary wave 4 correction carries the potential to return the ES the area of the March 2020 lows over the next year or so.
June 24, 2021