Sunday’s Globex session is seeing some selling to start. The ES is currently sitting just below 3900. As I discuss very often, I normally am running two “counts” with slight differences as to the outcome. I have adjusted the labeling to reflect the 2nd parallel “count.” This count suggests that the Minor wave 3 of Intermediate wave “C” completed at the 3639 low with the ES in the process of finishing a Minor 4th wave bounce. The difference then, between the two is the intensity of the expected downturn as in is it a 3rd or a 5th wave.
For tomorrow, expectations remain for the ES to continue to move higher to finish wave “C” of 4. Resistance for the move comes in at 3905 to 3915, 3931, 3958, 3982, and then 4000 to 4048
If, the market turns lower before moving above 3950 there would be a strong possibility that the Minor 4th wave ended in a failure with the selling picking up intensity and velocity. Breaking below the hourly 50, and 200 EMA along with the hourly 200 SMA should clear the path for the decline to break 3800, 3741, 3700, with support for the move being found from 33644, 3535, 3360, 3285, to 3225.