Monday’s trade was deceptive at several points with the ES initially finding small buying support, which initially was crushed with the ES dropping quickly to session lows before the “big brother” of the small buying support stepped in and smacked down the selling pressure. All in all, the buyers were quickly declared the winners with the ES breaking to new all time highs several times today. Resistance at 4560 was basically held until after the closing bell when stronger buying pushed prices towards 4566. I have updated the labeling and discuss using a “line” chart to fine tune the wave count. The ES does continue to carry a higher probability of reaching above 4600+ with two zones now likely to be reached. The first 4610 to 4620 and the second at 4660 +/- 5 points. The volatility is also back, which will continue to deceive as it flies in both direction. Trend should remain up for tomorrow suggesting pull back will be shallow’ish. AMD, MSFT, and GOOGL report Tuesday after the close.
October 25, 2021