$ES #ES-mini #trading setup #Head and Shoulders
Last week ES-mini futures broke under the important support, the green band 4,415 – 4,400:
That green band 4,415-4,400 was a critical support, the neckline of a huge bearish reversal Head and Shoulders pattern. We can see that the neckline 4,400- 4,415 turned from support into a resistance.
Last week I outlined several reasons why I believed that 4,315 would be a rock solid support.
There are several reasons why 4,312 can be considered a rock solid support:
(i) its a 100% ext of the wave A down, and
(ii) its a 50% retracement of the preceding five wave move up, and
(iii) its a 500 Day moving Average, and
(iv) this is where a declining black trendline connecting the Jun’23 high and Aug’23 low is located.
The drop off the last high made on Sep the 1st looks like an impulsive five wave down structure:
Let’s zoom in:
Despite the crowd expectations for a huge market crash after break under the neckline 4,400 I would rather expect a whipsawish (a)-(b)-(c) up corrective bounce off 4,312 support. That corrective structure may push ES-mini up to 4,425 or even to 4,460sh.
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