$ES #ES-mini #trading setup
In my yesterday update I shared two main resistance levels:
That -a-b-c- up structure has two main resistance levels:
That -a-b-c- up structure has two main resistance levels:
- 123.6% ext of the wave -a- up = 4,543, and
- 138.2% ext of the wave -a- up = 4,595.
ES-mini hit the target 1 yesterday and even slightly overshot it.
(ii) The Less Bullish scenario:
We can make a case where ES has made enough micro waves to consider the top of the rally is in:
Let’s zoom-in to see the micro structure of the rally off the low made on July 7th:
As you can see, we can press five micro waves up off that almost straight lift up.
The first support that has to be broken by bears to confirm a bearish reversal is 4,493.
(i) The Primary Scenario 1. The Very Bullish.
However, When we deal with a five wave up structure in the direction of the prevailing trend more often than not we see rally extending past the 100% ext of the preceding leg up.
Therefore as long as bulls hold ES over the immediate support 4,493 up remains the path of the least resistance. That subwave c of v can extend to 4,570 – 4,590.
This is how a micro path of the Very Bullish scenario leading to the TOP looks like:
That micro count argues fro a quick drop down to 4,528 – 4,520 this morning.
If bulls stop that drop at or in the upper Green Box that would be yet another long setup for another push higher targeting the Red Target box.
In my opinion, a push over 4,589 would create an attractive 100 point short opportunity with the target 1 = 4,493.