Not out of the woods yet

The market traded modestly higher today, following expectations for further upside off yesterday's low. However, price remains below key resistance that still needs to be cleared in order to assume that a bottom is already in place for blue wave (ii) of iii or red wave ii of the ending diagonal 5th.

If ES can manage a sustained break above 2743 ES, then it begins to dramatically improve odds that a bottom has already be struck. Until then, this bounce can still easily count as a corrective wave iv of (c) shown in red, allowing for another low as red wave v of (c) into the 2694 - 2671 ES support region below.

If 2743 ES is cleared from here, then the next step towards confirming a bottom would be filling out a larger 5 waves up off yesterday's low, which would take price back to ~2770 ES next.

ES U18 - Micro - Jun-26 1227 PM (2 hour)
ES U18 - Micro - Jun-26 1227 PM (2 hour)
ES U18 - Intraday - Jun-26 1228 PM (10 min)
ES U18 - Intraday - Jun-26 1228 PM (10 min)
Garrett Patten covers both U.S. and international equity indices as well as stocks for ElliottWaveTrader.