Wednesday’s trade continued higher with higher volumes. The trade was for the most part was two way and again the volatility remained high and provided solid upside and downside moves. It was a profitable day. The ES continued higher reaching upside resistance at 4586. As I have discussed before, a move above 4586 does not negate the Intermediate wave 2 count currently in force. It does however, produce an adjustment to the internal count of wave “C” of 2. This being said I have always included the additional Fibonacci extensions which remain at 4590, 4612 to 4621, and then 4650. At this juncture I can’t rule out a continued rally reaching 4686 to 4700. I will also add that under Elliott guidelines 2nd waves can retrace nearly all of wave 1 and can be deceptive just before completing and a more powerful 3rd wave starts to unfold. For Thursday, the latest CPI and jobless claim numbers are due out before the opening. This I feel will undoubtedly set the tone for the session. Before, though, the ES can continue to climb during the Globex session resistance levels remain as stated above. Support for now remains in line to where the MA’s on the hourly chart are sitting. Support then should be found at 4569, 4550, 4528, 4504 to 4497 and then 4445 to 4358.
February 9, 2022