A tight consolidation in ES-mini was followed by a strong drop caused by CPI release at 8-30 AM EST on Thursday.
ES-mini found support at 76.4% ext of the first leg down, a decline off the top made in Jan’22 into the bottom made in May’22. That break under support opened the door for a decline targeting 100% ext = 3,353.
Price continues to follow our primary bearish “3-3-3” count:
To invalidate that scenario bulls need to push ES back up over 3,571, the important support that got broken this morning.