Monday’s trade was strong to the upside.  The buyers returned from the opening and basically pushed the ES 4550 with a close at 4575.  The Preferred view remains the same in that the ES remains tracing out an Intermediate wave 2 (a-b-c) bounce.  Thus far wave A is complete with wave B possibly still in progress. Friday’s low may have completed the entire “b” wave or the first leg of wave “b”.  If the highs remain below 4631 allow for a turn and drop to the area of Friday’s lows down to 4444 this then would complete wave “c” of B” and set the stage for wave “C” of Intermediate 2 to begin.

Second scenario takes over on a break 4631 with follow through.  This would suggest that Friday’s lows completed wave “B” of Intermediate wave 2, with wave “C” well underway.  Resistance for wave “C” comes in at 4703, 4766, 4808.

Third scenario takes over on a break above 4809. This would suggest that the low at 4101 was the completion point for an Intermediate wave A, which then suggests that ES is rallying in an irregular “B” wave.  Resistance to complete the irregular “B” wave comes in at 4829, 4875, 4920, 4976 to 5033 to 5080

None of the scenarios presented change the long term outlook.  Basically it just delays the ultimate outcome for a month or more.  There is no reason not to trade them.  There will be multitudes of trades to do in options and futures and for day traders, swing traders, position traders and everything in between.