$ES #ES mini futures #trading setup
On March 13 we correctly predicted a corrective bounce.
On March 14 we correctly predicted a move down to re-test the green Demand zone.
This morning we noted that ES dropped down to the green demand zone in a corrective manner and predicted a corrective bounce.
This is how ES-mini looks right now:
We can see a corrective overlapping bounce off the morning low.
Overlapping moves (note that x down violated the high of the blue wave a up, that is called “overlapping”) are corrective moves. Corrective moves once get completed are followed by strong impulsive moves down to new lower lows. That w-x-y up structure can extend up to 3,970 – 4,000.
Note that I moved the stop for bulls to 3,901. Break under that level would confirm completion of that weak bounce.
In conclusion: that weak bounce will set the stage for a new strong leg down targeting new lower lows under 3,840.