Wednesday’s trade didn’t produce any major revelations in terms of the Elliott count or labeling. The ES continued to trace out the minute 4th wave correction in progress off of the 4798 high from yesterday. Thus far, I can count a 3 wave pattern which suggests that today’s 4770 low may be the completion point for the correction. However, having said that the rally off the 4770 low to the late high at 4796 would leave 3 waves up should the ES drop below 4781 and then suggest that the minute 4th wave correction is still in progress. So, I’m leaving open the downside potential with a drop below 4770 being possible. I update support and resistance levels for the balance of a 4th wave should it occur. Expectations for now remain for the advance to pick up again and would be signaled by a clean break back above 4798 and then again at 4810 to 4815. Support for an extended wave 4 comes in at 4757 to 4740 and then 4711 to 4709.
December 29, 2021