Wednesday’s trade was for much of the session sideways and slow. There were moments of solid trading first thing this morning and then after the FED minutes were released at 2 PM EST. Initially the market shot up and then down and then up again before settling to the upside with continued strength from the buyers. On an Elliott basis I had discussed yesterday the potential for the ES to break back above the hourly 200 MA, which was sitting at approximately 4470 and if we got a strong enough break it would or should have cleared the path for a continued rally to next resistance at 4497. This morning’s drive lower did end up breaking below the 20 and 50 MA’s again on the hourly chart. However, the retaking of those MA’s produced the same reaction but to the upside. So basically, nothing has changed in terms of what we can expect for tomorrow. Each side has an equal probability of coming into play. Resistance and Support zones remain as previously given and are labeled on the chart.
February 16, 2022