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.
May 17, 2022
Tuesday’s trade was within expectations as the ES continues to trace out a minute ...