When examining the short term Elliott Wave view in E-Mini Dow Jones Futures (YM), it is clear that the trend is poised to continue higher within the sequence that originated from the April-2024 low. The current analysis favors an upside movement in wave 5 of (5) since April 18, 2024 low, as long as any dips remain above the 40053 low level.
Since the April-2024 low of (4), the sequence has unfolded with point 1 marking a high at 40213, point 2 establishing a low at 38111, and point 3 reaching a high at 41672. The subsequent 4 correction was identified as a clear 3 swing zigzag pullback, culminating at the 40053 low level. This sets the stage for an anticipated upside movement in wave 5, provided that the price remains above 41672 high to avoid the risk of a double correction scenario.
Within the 4 correction, sub-divisions ((a)), ((b)), and ((c)) were identified with key levels at 40466 low, 40795 high, and 40053 low respectively. The sequence just missed hitting equal leg areas in 4 before the subsequent upward trajectory. Following the 4 low point, further subdivisions ((i)) of 5 unfolded with (i) topping at 41051 high. This paves the way for corrective pullback in ((ii)), expected to hold above the 40053 low in order to proceed higher towards ((iii)).
Drilling down into the ((i)) of 5 sequence, sub-divisions (i) through (v) were mapped out, encompassing highs and lows at 40685, 40158, 41029, 40863, and 41051 respectively. Similarly, (a) of ((ii)) was placed at 40606 low, with a projected bounce in (b) before a subsequent downturn in (c) to conclude ((ii)). The critical factor here remains the maintenance of levels above 40053 low to sustain the upward trajectory in wave 5.
As long as the price action stays above the 40053 low level, the anticipated move towards 42052 – 42671 area is expected to complete the impulse wave that originated from the April-2024 low before any corrective downside movement. However, a break below the 40053 low could potentially trigger a double correction scenario, leading the price towards levels around 39432 or even lower before resuming the upward trend.