Monday’s trade was a continuation of the upswing after the gap down Globex opening on Sunday. The ES did manage to close the gap but not by much. I was a bit premature in labeling Friday’s high as the completion point for Minor wave 2. As it turned out Friday’s 4384 high was the completion point for wave “a” of 2 with the gap down to 4251 being the end of wave “b” of 2. Thus, we remain in the process of tracing out wave “c” of 2. Resistance comes in at 4392 to 4401, 4426, and then 4443 to 4450. It seems that these zones should be able to contain the balance of wave “C” and complete Minor wave 2. However, should the push be stronger there is additional resistance at 44473 and then 4534 . At this point I am not expecting that strong of a move. Pull backs are likely to remain shallow at this stage. If the NQ starts to break down below the hourly 20MA at 4332, the 200 MA at 4327 and then the 50MA 4307 the Minor wave 2 would likely be complete.
February 28, 2022