Tuesday’s trade finally saw the Santa rally after a early push lower. I have adjusted the labeling in that the low at 4520 is now the completion point for minute wave 1 of “C” with minute wave 2 of “C” still in progress. Additional resistance to complete wave 2 comes in at 4654, 4673 to 4685 and then 4700 to 4712. Wave 2 can retrace nearly 100% of wave 1, but it can not exceed the start point for wave 1 which is 4743.25. For now the expectation is that resistance under 4700 will contain and complete wave 2 and yield to the star of Minute wave 3. Expectations for wave 3 are for the ES to drop below 4492 and down into support that begins at 4435, 4398, and then 4340 to 4318.
May 12, 2022
Thursday’s trade kept the volatility popping and the trading opportunities flowing. The ES started ...