Wednesday’s trade began to show signs the buyers were more eager to step in – for whatever the reason – Which did give some necessary support to a Minor 4th wave being in force. The ES did manage late in the session to move above 3980 reaching 3998 before dropping after the close.
I have not made any changes to the overall labeling or EW count – therefore I still need to allot a 50% probability for both the upside scenario and the downside scenario. The weakness and inability for the ES to pick up steam and move more convincingly above 4000 and ultimately up to 4055 to complete the Minor 4th wave speaks volumes towards the “repricing” amongst component companies is continuing. The selling pressure has put a pause in more aggressive buying, but there remains a fair amount of bottom fishing. I don’t recommend it at the moment – bounces yes – but keep in mind that bounces are at the moment coming in weaker than expected.
The ES remains in the process of tracing out what I’m labeling as a Minor 4th wave correction. The structure is now suggesting the 4th wave is forming a zigzag pattern. Ultimately, I continue to look for the ES to break above 4000 and up to 4040 to 4090.