Wednesday’s trade was somewhat range bound – solid rallies and declines but within a range. The ES did not break below 4275 which would have given support to the market being in the beginning stages of the Minor 3rd wave decline. What this did leave though is a 3 wave decline off of the 4399 high to the 4275 low. I am presenting an alternate view in that the ES may be putting in a “double a-b-c” pattern. Where the decline to 4275 would be labeled as an “X” wave with the 2nd a-b-c in progress now. In fact within the 2nd a-b-c pattern both waves “a’ and “b” would be complete with wave “c” nearly complete. For Thursday, the ES still appears to need additional rally with resistance at 4425 to 4444 still being the most likely completion zone for the Minor wave 2 bounce. Downside should it get strong would need to break below all the MA’s also below 4275 to give support to the Minor wave 2 being complete and the Minor wave 3 getting started. Also, there shouldn’t be much trouble pushing the market below 4275.
March 2, 2022