ES Morning Update June 3rd 2022

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We got the back-test yesterday of the lower trendline in the purple rising channel, so if this pullback is going to be an ABC one then we should see one more move down today to reset and possibly break the recent lows at 4071 and 4072 with 4035-4040 as a target low, or 3985 if really deep. If it turns out to be just a one wave pullback then the Small Wave 2 is over and we started Small Wave 3 up yesterday with the last day rally.

I'm leaning toward that being the case and that this Small Wave 3 up will subdivide with 5 Tiny Waves inside it, whereas we only finished Tiny Wave 1 up and we are currently in Tiny Wave 2 now.

This of course means the current pullback here in the premarket is going to end soon and reverse back up to start Tiny Wave 3 inside Small Wave 3, which could happen after the job data at 8:30 this morning. In both scenario's the market should go back up after the down move is finished. In the bullish one the down move will be shallow, like what it is right now... plus whatever shakeout they do with the jobs data.

Resistance on the way up is big around the triple tops at 4300, so I doubt if we get past that on the first try.  Anyway, that's the two scenario's I see as possible for today.  Which ever one happens we should go up next week for Small Wave 3 I think.  Have a blessed day.

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