Ran into Some Resistance (Prior Support)

Price today reversed slightly higher from overnight levels in the wake of FED Chair Jerome Powell's comments. Still, after the new high, price movement was not very dynamic. Based on the ES 4-Hr futures, below, price ran into some prior support which became resistance and gave up the climb higher for the day. Price could find ways to extend the local uptrend.

As shown the upturn from the minute ((i)) wave is still quite short in both time and price. While the prior fourth wave, iv, might be all of the story, a case can be made for additional upside movement from the lower time-frame counts. Confusing the issue is the fact that the futures traded down last night and overlapped the prior high. Cash did not. Remember that structures like diagonals and triangles are certainly possible to extend the duration of an upturn. It is possible with the overnight overlap that the ES futures are trying to make one of those patterns.

And while we will continue to monitor the situation, additional wave structure is needed. We do note that the Elliott Wave Oscillator was able to get itself back into positive territory, albeit weakly.

Have an excellent start to your evening,

TraderJoe