Elliott Wave View: S&P 500 E-Mini Futures (ES) Short Term Support Area [Video]

Elliott Wave Forecast Team ElliottWave-Forecast.com

Short Term Elliott Wave in S&P 500 E-Mini Futures (ES) suggests the rally from September 25, 2020 low remains ongoing as a 5 waves impulse Elliott Wave structure. In the 45 minutes chart below, we can see wave (4) of this impulsive rally ended at 4223.53. The Index has resumed higher within wave (5) with internal subdivision of another impulse in lesser degree.

Up from wave (4), wave ((i)) ended at 4338.5 and pullback in wave ((ii)) ended at 4315.50. Index then resumes higher in wave ((iii)) towards 4408.25 and dips in wave ((iv)) ended at 4375.50. Final leg higher wave ((v)) ended at 4416.75 and this completed wave 1 in higher degree. Wave 2 pullback is currently in progress to correct cycle from July 20, 2021 low. The internal subdivision of the pullback is unfolding as a double three Elliott Wave structure. Down from wave 1, wave ((w)) ended at 4364.75, and rally in wave ((x)) ended at 4407.75. Expect wave ((y)) of 2 to end at 4323.4 – 4355.7 blue box area before the Index resumes higher again. Near term, as far as July 20 pivot low at 4223.53 remains intact, expect the Index to find support and extends to new high.

S&P 500 E-Mini Futures 45Minutes Elliott Wave Chart

ES Elliott Wave Video

Author

Elliott Wave Forecast Team

ElliottWave-Forecast.com

EUR/USD holds firm above 1.1900 as US NFP looms

EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.

GBP/USD remains above nine-day EMA near 1.3650

GBP/USD recovers its recent losses from the previous session, trading around 1.3680 during the European hours on Wednesday. The technical analysis of the daily chart indicates a sustained bullish bias, as the pair trades within an ascending channel pattern.

Gold sticks to gains near $5,050 as focus shifts to US NFP

Gold holds moderate gains near the $5,050 level in the European session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal ahead of the critical US NFP release.

US Nonfarm Payrolls expected to show modest job gains in January

The United States Bureau of Labor Statistics will release the delayed Nonfarm Payrolls data for January on Wednesday at 13:30 GMT. Investors expect NFP to rise by 70K following the 50K increase recorded in December.

S&P 500 at 7,000 is a valuation test, not a liquidity problem

The rebound from last week’s drawdown never quite shook the sense that it was being supported by borrowed conviction. The S&P 500 once again tested near the 7,000 level (6,986 as the high watermark) and failed, despite a macro backdrop that would normally be interpreted as supportive of risk.

Bitcoin price slips below $67,000 ahead of US Nonfarm Payrolls data

Bitcoin price extends losses, and trades below the lower consolidating boundary at $67,300 at the time of writing. A firm close below this level could trigger a deeper correction for BTC. Despite the weakness in price action, institutional demand shows signs of support, recording mild inflows in ETFs so far this week.