The market took another 3 days to finish the wedge we were mentioning, within an annoyingly tight range. Thursday finally saw the resolution of that wedge with a decent pullback to roughly the area where the wedge started. After the market made a low there, bulls got back control with authority. Friday was very bullish, with a 10+ points gap higher and finishing at the highs. From an EWT perspective, the wedge pattern (or ending diagonal) is usually a final wave (wave 5). Considering that the market retreated to its starting point, then made new highs, it likely means that it was a wave 5 of minor degree and we are now in a new wave started at Thursday’s low. On a micro-count, it looks like the market still needs a few 4-5 waves to unwind, so it’s hard to call a top, but in case the market moves lower, Thursday’s low is all important. Overlapping that is likely confirmation that a turn started.
Still no change on the weekly cycles. No unwind in sight (bullish retrace and corresponding ENDs) and now directionality bounced and is heading higher again.
The up impulses on the daily cycles are looking good and (still) look bullish picture. ES came very close to testing the mcm-MA on Thursday’s low before bouncing, showing that it is still providing support (which is also bullish).
The 288 and 480min cycles
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