Contracting Diagonal or into Minute ((c))

This post is being prepared shortly before the cash close of the equity market. The ES 4-hr chart may have made the contracting leading diagonal minute ((a)) wave, as per the black count in the chart below. We have suggested for some days that this structure was possible. While the proportions are not the greatest, the measurements do not break Elliott Wave rules.

ES Futures - 4 Hr - Contracting Diagonal ((a)) or into ((c))

Because the count of the internal up waves is not exactly clear as 5's or 3's we must assign the equal alternate labels in red that the minute ((a)) wave was completed prior - on June 27th's high - and we are now in the minute ((c)) wave up. Either is OK and both are easy to track. The minute ((a)) wave could go higher and remain within the rules. Note this higher high is likely on a divergence with the Elliott Wave Oscillator with about 167 candles on the chart. Also, this count found some resistance on the upper daily Bollinger Band which was a reason for suggesting it.

The U.S. Federal Reserve raised interest rates by 0.75% today as expected. The GDP report occurs before market open tomorrow.

Have a good start to the evening,

TraderJoe