Elliott Wave Update – ES – May 13, 2021

Thursday’s trade continued to follow current analysis. Today’s globes low at 4029 looks to have completed the initial 5 waves down off of the 4238 high, which 1) gives stronger support to the 4238 high completing an Intermediate wave 3 advance and 2) gives support to the expected and underway corrective bounce being an A-B-C structure which would be labelled wave 2 or B. Expectations currently are for the ES to continue tracing out the corrective bounce already in progress. Thus far I can count waves A and B as complete which would suggest the rally off the 4081 low today will ultimately form a 5 wave advance to complete wave C. If this is the case expectations would be for the ES to not have hesitation in breaking above 4127 and then 4134 with an ultimate high in the zone from 4158 to 4177. The alternate count at the moment would suggest that the 4127 high from today completed wave A up and a B wave down is in progress. This suggests the market will drop to the zone 1 at 4090 – 4075 or zone 2 at 4067 to 4058 area before a C wave advance would be expected to take over.