Wednesday’s trade saw the Santa rally continue to limp higher for the most part — solid gains were made although the rally didn’t have full participation. Once again it seemed to be directed at the titan tech stocks with TSLA being in full play today. Nonetheless the Elliott count remains the same in that thus far the ES has reached the next level of resistance at 4687. It is not very clear as to whether this level will hold and complete the minute wave 2 bounce underway off of the 4520 low on Monday. Thus far the rally has gained nearly 70 points in three days. That is an amazing move in the face of more bearish scenarios than bullish. But here we are staring at the possibility for another run for the “gold ring.” With Friday’s holiday closures, tomorrow will be the weekly expiration for the ES. That alone can drive the index up or down 50 points or more. Additional resistance comes in at 4700 to 4713 and then 4737. A strong break avoe 4743 will likely negate the downside count, which I do discuss in tonight’s update. Support levels remain as marked.
December 22, 2021