$ES #Macro #Daily #i down – ii up setup #trading setup
Since ES bottomed on Dec 22nd it has been consolidating in a narrow range.
That tells us that bulls have been trying to turn ES up but a week later all they could accomplish is retrace only 1/3 of the preceeding decline.
That inability of bulls to retrace substantial (more than 50% ) of the preceding impulsive looking decline is a strong argument in favor of our main bearish scenario.
If the bearish -i- down, -ii- up (or -a- down, -b- up ) structure got completed with a spike on Monday evening bears should confirm it by breaking under 3,800. A break under 3,800 would open the door for a quick drop down to 3,700 (June low). Moreover, that drop can extend down to 3,600, a level that stopped several down swings in Sep – Oct 2022.
ES continues to follow our micro wave count. Let’s switch to a 30 min timeframe:
If the bearish -i- down, -ii- up (or -a- down, -b- up ) structure got completed with a spike on Monday evening bears should confirm it by breaking under the support at 3,800.
A break under 3,800 would open the door for a quick drop down to 3,700 (June low). Moreover, that drop can extend down to 3,600, a level that stopped several down swings in Sep – Oct 2022.