Friday’s trade included a new high for the sequence and a rejection of that high with a solid move lower ensuing. The ES did manage to poke its nose above 4000 again on Friday, but the “hammer” finally caught up with the “mole” in the proverbial game of Whack a Mole. The ES slid below 4000 and 3950 to finish the session closer to 3965.
For Monday, I’m leaving open the potential for a last push or another challenge of 4000 to 4030. I would suspect though that the challenge would be surrendered with another rejection of the levels. Elliott counts remain open as well, with the Minor 4th wave still tracing out the “C” to complete the move.
If, though, Friday’s high did complete Minor wave 4, it would suggest the decline continues with rallies holding below 3980. Downside should again pick up speed and not much trouble breaking below the Daily 50 & 4, both hanging out at the 3950 area. Support under should be found at the Daily 8 at 3923 and the Daily 20 at 3896. Additional Fibonacci levels are discussed in the update.