ES Morning Update April 2nd 2025
We got some chop yesterday, which I think finished the wave 2 down inside a 5 wave move up to complete a C inside a larger B wave. We then started the wave 3 up (I think?) into the close, which seems to be subdividing into 5 even smaller waves.
This market is setup now for a big squeeze and all that it needs is some trigger to get it going… meaning some kind of good news. It could be anything really, from ADP Employment Report this morning before the open, the Factory Orders at 10pm or EIA Petroleum Status Report at 10:30. Or something positive about the Tariffs?
Maybe it happens Thursday from the Jobless Claims, or NFP Report (Employment Situation) on Friday? There’s no way to guess the news event but the technicals are bullish into this Friday (possibly carrying into Monday), and so is the cycles, which I find the most accurate. Next week though is bearish again and it lasts into early May, so “if” this market is planning on having a big drop (and I think it is) we should see the 3/25 highs taken out beforehand.
Bears will have stops right above that zone and they need to be taken out before the big drop. Nothing to do but hang tight right now and get ready to short after this Friday and those bears are squeezed.
Have a blessed day.
Source: http://reddragonleo.com/2025/04/02/es-morning-update-april-2nd-2025/