$ES #ES #trading setup #Elliott Wave #trading strategy #acceleration
The Weekly chart of ES-mini looks bullish, no doubts about that:
It is bullish because ES is sitting at support of 8 EMA Weekly = 4,517. It is bullish because EMA 8 weekly is located over 21 EMA weekly and the EMA 21 weekly (the blue line) has an upward slope.
Break under 4,517, the black line showing 8 EMA Weekly, level will most likely be followed by test of the next macro support widely watched by millions of traders, the weekly EMA 21 = 4,463.
But as long as bull hold ES over the immediate support 4,517 they will be able to push higher and attack the Red trend line.
Now let’s zoom-in to a 240 min chart:
Yesterday ES-mini tested the upper edge of the red supply zone (4,543).
Bears keep sitting on a clean short setup that allows bears to start a new large leg down that will be able to break under the neckline 4,415. However, any good setup, even a picture perfect setup may get invalidated.
If bulls keep pushing higher first over 4,545 and then over 4,560 that would most likely mean that the large bearish reversal Head and Shoulders pattern shown on the chart above got invalidated.
Let’s look at an alternative bullish micro count on a 15 min chart:
So far the micro picture looks rather bullish.
Yesterday ES hit the Red Box and the time fib that were supposed to stop the rally and turn ES down. But we have not got any strong move down pre-market. ES has been leaking down in a corrective fashion.
As I noted on the 240 min chart shown above, 4,543 is the upper edge of the resistance band. The alt bullish micro count argues that another move up over 4,540 could trigger an accelerated rally in a subwave c of wave iii up targeting 4,576 – 4,582.
The key daily support for Tuesday is 4,526.75.
A daily close today under 4,519.50 would most likely confirm that the trend turned down.