Delayed flight - Market Analysis

The market traded lower today, but for now is holding above the low made earlier this week. Therefore it is still possible to count a wave (ii) of iii bottom in place as shown in blue, with a i-ii start to wave (iii) of iii now. However, a move back back above the overnight high at 2785 ES is needed to strongly suggest that price is breaking out in wave iii of (iii) next.

Otherwise, if price continues lower from here and breaks the recent low made at 2736 ES, it would invalidate a bottom already in place for wave (ii) of iii and open the door to a test of the .618 retrace at 2723 ES in red wave c for a larger wave (ii) flat before reattempting the start to wave (iii) of iii again.

ES U18 - Micro - Jun-21 1220 PM (4 hour)
ES U18 - Micro - Jun-21 1220 PM (4 hour)
Garrett Patten covers both U.S. and international equity indices as well as stocks for ElliottWaveTrader.