Monday’s trade was interesting as the first full trading day of 2022. The ES did manage to put in an additional low at 4747 which has allowed me to label the completion point for the minute wave 4 correction. However, having done that it does put some pressure on the ES to hold above 4775 and continue higher with a break above 4790 to 4795 and then 4800. Resistance levels to complete this initial leg up of the larger Minor wave 1 begins at 4801, 4834, 4860, and then 4884 to 4887. If though the ES fails to hold above 4775 and breaks below the hourly 50 MA at 4774 it would increase the potential that the minute wave 4 correction is still in force. with support for that move at 4742 and then 4711.
January 3, 2022