Tuesday’s trade was full of volatility and acceleration. I have updated the labeling for the ES in that the minute wave 2 correction has been marked as complete at the 4669 high. This then suggests that the decline which began yesterday afternoon is the start of the minute wave 3 decline. This again is a 3 of 3 move in that the ES remains in the process of tracing out a Minor wave 3 decline off of the 4716 high from last Thursday’s globex session. Minor wave 3 will consist of 5 waves of minute degree – of which waves 1 and 2 are complete. Therefore the ES is now moving lower within minute wave 3 of Minor wave 3. I do understand it can be confusing with all the numbers and degrees – but the main point here is that the ES is heading lower and will as seen today continue to have periods of acceleration to the downside. Support at 4557 was reached today with a solid bounce up off that level. Expectations for tomorrow would be for the downside to continue and drop the ES towards next stronger resistance at the 4500 area. Ultimately, the ES has potential of reaching support at the 4400 area before Minor wave 3 is complete. Support and resistance has also been updated on the chart.
November 30, 2021