When price goes up in a straight-line without pullbacks that is a sign it is driven by forced liquidations of short positions. That is a sign that we may be dealing with a corrective bounce:
Only recently we had three similar dead cat bounces that did not have follow through and followed by another move down.
The lack of structure behind that move makes me consider that bearish scenario:
That pattern is composed of five waves and each wave is larger than the preceding one. It gets concluded with the final largest move. Under the Elliott Wave theory we call that pattern the “Expanding Triangle” and label those five waves a, b, c, d and e.
If we apply that count to the current chart of ES-mini we will be able to count that rally as the final subwave e up:
That pattern can provide us with an attractive short setup. If bull manage to produce the final spike to tag the Red Target box and then bears immediately turn it down and push ES back under the resistance 3,751 we would get a reliable short setup called “failed breakout”.