Tuesday’s trade did give us a few stronger signals that the ES is still within the Minor wave 2 countertrend correction. Current analysis suggests that wave A of Minor 2 completed at the 4202 high with wave B of Minor 2 in progress coming into today. That B wave appears to have completed at today’s low at 4076 with wave C launching higher as expected. I have updated the chart to reflect the move.
For tomorrow, I will continue to look for the ES and the buyers to build on the rally with a push above today’s high and then yesterday 4168 high and then eventually above last Friday’s Globex high at 4202. Resistance to complete Minor wave 2 starts at 4220 to 4226. There is a cluster of resistance from 4273 to 4318 which could complete the move with the Daily 200 MA at 4342. An additional small cluster of resistance is above at 4354 to 4386.
Once complete expectations remain for a Minor 3rd wave to take over and drop the market quickly back below 11491 and once underway I’ll update the support levels to watch for.