Wednesday’s trade was more muted and choppy which presented its own challenges both to the Elliott count and trading. The Elliott count is pushing a narrative that seemingly is bringing the ES to point of either falling off a cliff via a drop towards 4215 or rally back up to 4408. Today’s trading range produced a box between 4348 and 4373, which on an Elliott basis could be a series of 1st and 2nd waves which if correct should resolve with a “swan dive” to the downside. On the other side of that is the possibility that the ES if forming a “flat” a-b-c structure that would resolve with a rally towards 4380 to 4400. I update both scenarios and present Fibonacci extensions for a downside move. The picture itself should resolve itself tomorrow.
September 29, 2021