Wednesday’s trade was a strong statement about the power of Elliott Wave. The ES started the session in a sloping decline and remained more range bound as the markets waited for the FED announcement. The initial reaction was a very quick push lower, which came within 6 points of negating any upside moves. However, the 4596 level held and the the 4602 low marked the completion point for wave 2 of 3. This left only one way to go and that was up – and up it went with power and size as the buyers retook control of the ES and rallied 100 points straight into the close. The move itself was a classic Elliott “3 of 3” type move that I have spoken about so often. Yesterday’s update included another mention in that I described the ES as having to begin to rally higher without looking back. That is exactly what took place – so again I’m asking those who are interested to take note of the move itself – the power and strength as it blew through resistance levels all along the way. This is what you need to see moving forward when the expectation is for a ‘3 of 3’ move. Ok, for tomorrow I expect the rally to continue with pullbacks likely being on the shallow side and hopefully held by the MA’s. The wave “3 of 3” move still needs additional upside before a 4th wave correction kicks in. So to complete the larger minute wave 3, a small series of a 4th and 5th wave are needed. Upside resistance to complete the ‘3 of 3’ move comes in at 4740 to 4758. The larger Minor wave 5 in progress would be finishing wave 3 of 5, where again the ES would be expected to put in a series of a 4th and 5th wave before the entire sequence is complete. Resistance for the completion of the Minor wave 5 remains at 4825 to 4860 and then 4880 to 4960.
December 15, 2021