Room for lower - Market Analysis for Sep 8th, 2021

The market will likely close negative again today, still sliding lower off the high made last week where it looks like 5 waves up completed from the August low. Therefore, price continues to cooperate with expectations for a local top in place and at least a corrective pullback targeting standard retrace support in progress. Under that assumption, I lean towards today's low being a slight extension of an initial A-wave down from last week's high, and price currently working on a B-wave bounce.

Price has already reached the .382 retrace of the A-wave down, enough to consider the B-wave potentially complete but it seems pretty shallow and short-lived. Therefore, I favor a wider flat B-wave that can reach a little bit higher after hours or during tomorrow's session, targeting the .500 - .618 retrace between 4520.75 - 4527.50 before turning down again as wave C into the upper end of our retracement target zone between 4471.50 - 4423.75.

ES U21 - Micro - Sep-08 1255 PM (1 hour)
ES U21 - Micro - Sep-08 1255 PM (1 hour)
Garrett Patten is a senior analyst at ElliottWaveTrader covering both U.S. and international equity indices as well as stocks.