Tuesday’s trade was for the better part of the session range bound. The final 2 hours though were more volatile. The Elliott count remains the same in that I am still tracking an Intermediate wave 4 correction. Within wave 4, which ultimate forms an A-B-C structure, the initial decline has been labelled wave “a” of 4. The rally off of the 4029 low can be labelled as wave “b” of 4, while I need to leave open potential for wave “b” to continue I am leaning towards it being complete and wave “c” of 4 is now underway. If this is the case the ES would been in the initial stages with the first 2 of 5 legs are complete and the 3rd kicking in today. I’ve included Fibonacci extensions for both the upside and downside.
May 18, 2021