Monday’s trade included a new high for the advancing sequence and also a reversal with the ES appearing to have completed or nearly so 5 waves down off the 4723.50 high reached during Sunday’s Globex session. I have labeled the 4723.50 high as the completion point for the 5 wave advance off of the 4492 low. What degree the advance will be is still undecided. At the moment I’m leaving it as a minute wave 5, but giving the ES the benefit of the doubt in that 4723.50 is the completion point for minute wave 1 of the Minor 5th wave advance. This then suggests that the ES will decline in an a-b-c corrective pattern which would be labeled as minute wave 2. The “do not break” zone is now at 4492 – this is where the market would need to break below to negate the stronger advance to new all time highs. For tomorrow – look for a bounce which should be 3 waves up and would be labeled as wave 2 or “b.” I have updated the Fibonacci retracements for the decline – resistance for the bounce comes in at 4660, 4674, 4688 and then 4700.
February 2, 2023
Thursday’s trade was revealing and wild ending with the trifecta of surprises. The upside ...