Elliott Wave View: S&P E-Mini Futures (ES) resumes higher [Video]

Elliott Wave Forecast Team ElliottWave-Forecast.com

Elliott Wave View suggests that since forming the low in March 2020, S&P E-Mini Futures (ES) has rallied in an impulse Elliott Wave structure. Rally to 3959.25 ended wave ((3)) and pullback in wave ((4)) is proposed complete at 3721.55 as a double three structure. Down from wave ((3)), wave (W) ended at 3804.75, rally in wave (X) ended at 3934.50, and decline to 3721.55 ended wave (Y). Index ended wave ((4)) at the 100% – 161.8% Fibonacci extension from wave ((3)) high at 3683.81 – 3779.53 blue box area.

Index has since rallied higher from the blue box area in wave ((5)). However, it still needs to break above wave ((3)) high at 3959.25 to rule out a double correction in wave ((4)). Up from wave ((3)), wave ((i)) ended at 3814.50 and pullback to wave ((ii)) ended at 3728.50. Index then rallied higher again in wave ((iii)) towards 3866.25 and pullback in wave ((iv)) ended at 3796.25. Final leg higher wave ((v)) ended at 3878.75 which also completed wave 1. Near term, while pullback stays above March 5 low (37321.5) in the first degree, expect dips to find support for more upside.

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

S&P E-Mini Futures (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.