$ES $NQ #trading setup
In my weekend update I correctly predicted an upcoming corrective pullback.
Both, ES and NQ followed the path I shared in my weekend update:
This is how ES-mini looks now:
This morning ES-mini topped in a subwave a up and then leaked in a subwave b down the whole day.
I continue to expect one more trip lower into the Green Box before ES-mini completes a corrective w-x-y down structure of the subwave b down of wave -b- of -iii- up. At the very minimum bears need to slightly undercut the low made at 3,978.50. Such a drop to a lower low tagging the Green Box would be an attractive long setup to ride a rally in a subwave -c- up into the end of this week.
A second leg up into the higher red box would complete a corrective a-b-c up structure of the subwave -b- up of wave -iii- down and set the stage for a very strong decline in subwave -c- of wave -iii- down.
Target 1 for decline in subwave -c- of wave -iii- down = 3,810.
Target 2 for decline in subwave -c- of wave -iii- down = 3,750.
NQ-mini futures has an identical wave count:
NQ continues to consolidate in a flat corrective a-b-c up structure that may top into the Red Supply zone.
I count that flat consolidation as a subwave -b- up of wave -iii- down and should be followed by a strong five wave down decline in subwave -c- of wave -iii- down.
Target 1 for decline in subwave -c- of wave -iii- down = 11,470.
Target 2 for decline in subwave -c- of wave -iii- down = 11,265.