More detailed update – cover the big picture – what is going on that is affecting the markets. Are we at a low or near to a low? A holdable low – no I don’t think so – not yet. Again, we are in a developing and ongoing Intermediate 3rd wave down. There will be 5 waves of Minor degree, down, to produce the Intermediate 3rd wave. The ES is within Minor wave 3 down which will consist of 5 waves of minute degree down. It’s the building block theory at work.
Within Minor 3, I believe minute waves 1 and 2 are complete – with minute wave 3 down starting off of the 4153 high on Friday.
Fibonacci support levels for minute wave 3 come in at 3947, 3897, 3851, and then 3728. Ultimately, Minor wave 3 continues to project for levels below3700 – with Fibonacci support levels at 3592, 3508, and then 3372 which is a Fibonacci 1.618% level.
I am not expecting any upside surprises. Bounces should be expected – remember waves 2 and 4 remain countertrend. Outside of Fibonacci retracements I use the 8, 20, 50, and 200 MA’s on the 2, 5, and 60 minute charts for resistance levels.