Friday’s trade was again amazing and profitable. The ES continued to follow current analysis with an initial rally to 4487 which marked the completion point for wave 4 of minute 5. The sellers moved in again, with acceleration taking over the balance of the day. Support was reached at 4413 and then again at 4478 with the ES finishing the week at 4481. The start of Globex saw the buyers move back in with the ES back above 4400. I have updated the Elliott labeling by marking the 4381 low as the completion point for minute wave 5 of Minor wave “3”. While there remains the potential for minute 5 to still be in progress the ES has rallied over 25 points giving support to a Minor wave 4 being underway. Resistance for Minor 4 initially should be found at the hourly 8 MA at 4421 and then 20 MA at 4440, with the hourly 50 MA at 4488. Fibonacci resistance begins at 4503 and then 4515. Ultimately if Minor wave 4 is in progress the structure will ultimately form an A-B-C pattern where waves A and C will be advances with wave B a small decline. Also once Minor wave 4 is complete expectations for a Minor wave 5 decline to additional lows under 4478 would be in line. Fibonacci downside support comes in at 4357, 4336, and then 4267.
January 24, 2022