Friday’s trade was reactive to the Employment Situation numbers, but failed to break strongly lower and once the U.S. session got underway buyers returned with the ES putting in a solid rally. The ES did though push to a new high at 4549.50 after the number was released on Friday and the still stands as the market begins the next Globex session today. I have updated The Elliott labeling to reflect the completion point for the minute wave 4 correction, which suggests the ES is now heading higher in a minute wave 5 advance. I have also added the next layer of Fibonacci extensions for minute wave 5. On the chart then are Fibonacci resistance levels for Intermediate wave 5, Minor wave 5 and minute wave 5. The zones remain in line with a finishing advance up to at least 4600 with stronger clusters at 4625, 4637, and 4551 to 4660. Downside should again be shallow with moves being held above 4525 to 4514. A break below the 200 MA at 4514 would begin to show market weakness, but would not negate the upside potential for a finishing advance to the 4600 area.
September 6, 2021