4th wave consolidation.

Nothing has really changed from my post earlier today:

ES can easily count as a completed wave (3) of circle 3, since it hit the 1.00 extension target objective at 2298 ES last night after hours. If that is the case, then wave (4) can last into the end of the month consolidating sideways in an ABC that should hold between 2286 - 2279 ES.

Because the SPX did not quite reach the 1.00 extension in regular hours though, I am willing to consider the alternative count shown in red, where the current pullback is just a wave 4 of (3), and can target between 2302 - 2310 in wave 5 of (3).

Either way, we should find support between here and 2286 ES for a bounce in either the blue B-wave or a move to a new high in red wave 5. Stops on long positions being acquired during this pullback may be placed below the .618 extension at 2279 ES.

ES H7 - Micro - Jan-26 1328 PM (30 min)
ES H7 - Micro - Jan-26 1328 PM (30 min)
Garrett Patten is a senior analyst at ElliottWaveTrader covering both U.S. and international equity indices as well as stocks.