ES: Expect a Bullish Bounce

$ES #ES-mini #trading setup #Elliott Wave

If we examine a micro structure of that decline we will see it is structured as a complex corrective (w)-(x)-(y) structure, not a trending five wave down structure:

That implies bulls can start another leg up upon completion of that pullback.

Let’s now zoom-out to see two macro scenarios, a bullish and a bearish.

(1) the bullish “one-more-push-higher” scenario:

This bullish count will be valid as long as bulls hold ES over 4,306.75. We can consider that leakage as a micro wave iv down to be followed by another rally in a wave v up.

However, of bears violate that level that would be a solid confirmation that ES made a lasting top in mid June.

(2) the bearish “the top is in” scenario:

That non-stop leaking is a good argument in favor of the bearish “the top is in” scenario.

To confirm that ES actually made a lasting top we need either a break under 4,306.75 or a corrective a-b-c up bounce making a lower high followed by a breakdown under the low made by this first push lower (so far the low was made at 4,368.50.

Under the bearish count bears got a setup for a large decline in a wave (C) down targeting new lower lows (under the Oct’22 low). Normally an accelerated part of the decline starts after three consecutive lower highs.

ES Daily Support-turned-resistance for Tuesday is 4,381.50.

If bulls manage to reclaim that level we would most likely get a quick short covering rally to 4,408 (see the first chart above).

Subscribe to Free Updates

Get Unlimited Access

More To Explore

$ES: Bullish Reversal Setup: Inverse Head and Shoulders

$ES #trading setup #bullish reversal This morning I correctly predicted a pullback after the pre-market rally. After that pullback bulls got a charged Inverse Head and Shoulders pattern, a reliable bullish reversal setup: We can

CastAwayTrader October 4, 2023

$ES: Hit The Target Box and Popped with Gusto

$ES #ES #trading setup #Elliott Wave In my afternoon update yesterday I noted that ES was going to make another push down and that drop would be th efinal squiggle of the whole move down:

CastAwayTrader October 4, 2023

Important Disclaimer

CastAway Trader LLC, the publisher of this web-site and videos is not registered as an investment adviser nor a broker/dealer with either the U. S. Securities & Exchange Commission or any state securities regulatory authority. Users of the website www.castawaytrader.com and viewers of the videos are advised that all information presented on the website is solely for informational purposes, is not intended to be used as a personalized investment recommendation, and is not attuned to any specific portfolio or to any user’s particular investment needs or objectives.

Trading stocks, options, or futures carries a high level of risk, and may not be suitable for all investors. Before deciding to trade, you should carefully consider your objectives, financial situation, needs and level of experience. CastAway Trader LLC provides general overview of trading methods that does not take into account your objectives, financial situation or needs. The content of this website must not be construed as personal advice. All trading setups and/or trades presented in the web site and/or trading chat room by CastAway Trader an/or by other members of the chat should be considered hypothetical for educational purposes only and should not be expected to be replicated in a live trading account.

An investor could potentially lose all or more than the initial investment. You should not speculate with capital that you cannot afford to lose. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style.

You should be aware of all the risks associated with trading. You should seek advice from an independent financial advisor.

Any information posted on this web site is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All users of the website must determine for themselves what specific investments to make or not make and are urged to consult with their own independent financial advisors with respect to any investment decision. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. All opinions, analyses and information posted on the website are based on sources believed to be reliable and written in good faith, but should be independently verified, and no representation or warranty of any kind, express or implied, is made, including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, CastAwayTrader LLC and its officers and employees undertake no responsibility to notify such opinions, analyses or information or to keep such opinions, analyses or information current. Also be aware that the owners, officers and employees of the web site www.castawaytrader.com may have long or short positions in securities that may be discussed on the website, Premium Trading Chat room and/or in the videos posted by CastAway Trader LLC.

Past results are not indicative of future profits.