Wednesday’s trade did again see an attempt from the buyers to push the ES above yesterday’s 4358 high. Globex managed to reach 4345, while the U.S. open managed to push to 4334. Once the market began to decline I was able to define the minute wave 5. Within wave 5 waves 1 and 2 are complete with subminute wave 3 possibly complete or still needing an additional small leg down. Support at 4217 to 4212 should at this point contain it and give us the completion point for subminute wave 3 of minute wave 5. The expected wave 4 bounce should not give us any major surprises and be held below 4261 before the subminute wave 5 kicks in and again heads lower. Additional support beginning at 4192 to 4185 and then 4192 to 4173 with either zone being able to contain and complete the move. Once minute wave 5 is complete it will also complete the Minor wave 3 decline and set the stage for a Minor wave 4 corrective bounce. This correction would have the potential to take the market back above 4300 to 4360 before the next Minor degree decline begins.
February 23, 2022