Wednesday’s trade was extremely volatile in the ES. The market started up over 55 points as the US session got underway. After a brief pullback the buyers moved in and didn’t stop. Now, the volatility was in the speed at which the futures market moved around and the lack of solid follow through on either the buy side or the sell side. If you trade a smaller account it was a difficult day. Larger accounts did fine. For Thursday, I expect additional upside to continue to push to next resistance which is at 4304 to 4315, 4335, 4367 to 4379. All of these zones are in play right now and the ES remains within a corrective wave 2. As previously stated, second waves are known to retrace nearly all of wave one. That seems to be the case in the ES now. The money flow into the market was very strong today as firms reaffirmed their buy recommendations. AMZN announced after hours a 20:1 stock split which has already moved the stock up 80 points before Globex starts. Should the market start to decline it would need to do so with strong purpose and drive. The moving averages would need to be broken quickly and decisively and as of the close the 8 MA is at 4268, the 20 MA is at 4245, the 50 MA is at 4235. All of these levels would need to be broken to give support to the wave 2 correction being complete and the wave 3 decline being underway. All previously given support remains the same for now.
March 9, 2022