Monday’s trade formed more of an “inside” which keeps the ES in limbo in terms of direction. I need to keep open the potential for a continued move to the upside to complete a small wave 2 and have included resistance levels to cover the upside. Overall, though, second waves can retrace up to 85 to 90% of wave 1 and in this case it would suggest a move up to resistance at 4565. Additional resistance for an up move comes in at 4518, 4529, 4537, and 4545. If the ES begins to accelerate to the downside it would suggest that the Intermediate wave 3 which began off of 4586 is continuing to subdivide with the smaller wave 2 being complete at 4514 and that wave 3 of 3 is now underway. Expectations would be for a continued acceleration to the downside with a break below 4445, and then 433. Support levels have been included in tonight’s update and remain as given on yesterday’s update.
February 7, 2022