Russia Relief Rally

Yesterday's post suggested we look for upside sooner rather than later. There was a possibility of a more developed fifth wave down. That did not occur. What did seem to occur was a very negligible truncation which we also noted in the write-up. Thus, the count on the ES 4-Hr chart remains the same.

ES Futures - 4 Hr - Diagonal Count

The count from wave Minor 4 is that of minute ((a)), down, with the very slight truncation, and now minute ((b)) up. We must wait for the ((b)) wave, up, to burn itself out, and any lower low below minute ((a)) should start the minute ((c)) wave down of Minor 5.

This count gives us clear and crisp invalidation points at the prior Minor 4th wave high. And only good Elliott Wave analysis does that.

Again, Minor 5 only needs to be longer than Minor 3 in price, although it is ideal if it is also longer in time, too. And, here again, Elliott wave analysis provides the projected initial target.

Have a good start to the day.

TraderJoe