Last week seemed uneventful compared to the previous 2 weeks. Monday made a new low, albeit minor, then bulls got back in the game by protecting that low with a big up day on Tuesday. Big is a relative term, as that was “only” a bit over 20 points, nothing like the 30+ we got used to recently. The rest of the week saw sideways movement inside Tuesday’s range, so we can definitely say that the week ended undecided. From an EWT perspective we have an overlap of the first wave off the ATH, so now we have clear levels to watch for the bull/bear scenarios. The low at 2417 is all important as breaking it would mean that a nested move lower has started, which would see us a lot lower before it finished. On the upside, 2475 is the level to beat for bulls to be out of the woods (at least for now) as this would seal in a likely a-b-c down from ATH, which would mean new highs should follow.
On the weekly cycles, the mcm-MA did provide support yet again on ES, as we were saying last week. It remains to be seen if it will continue to do so.
The daily cycles both put in supports. ES triggered had already support at the lows from the initial drop off the ATH, while YM reversed it’s nested up impulse to put in a fresh support at this week’s lows. Interesting that directionality is still stuck at the lowest level, which is a warning the bulls need to do a bit more heavy lifting to get a more significant bounce going.
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