Wednesday’s trade gave additional support to the highs being in place to complete several degrees of advance and setting the stage for the start of the expected larger degree correction. The labeling changes I’ve made are showing strong support that the trend change has started. As always the degree of change make take more than 3 days to be believed but I suspect the phrase #supportisfutile will gain in popularity. The ES did initially put in a convincing head-fake to the upside on the opening reaching 4678. Once the sellers moved back in the downside picked up some intensity by dropping 59 points and breaking below the hourly 200 MA. The bounce off the low at 4625 has brought the ES back to the hourly 200 MA. I updated the labeling which reflects a Minor degree 5 wave decline underway to kick off the correction. Expectations would be for a new low under 4625 to occur first before another bounce higher followed by an additional drop towards 4585 to complete Minor wave 3.
November 10, 2021