$ES $NQ #trading setup #Elliott wave
If we get a decline down to the Green Box that decline would complete the textbook flat a-b-c consolidation, a continuation long setup to ride the second leg up in a wave -c-:
NQ-mini has an identical path:
Let’s zoom out:
For both ES and NQ, even if bulls produce another push higher it should be followed by another strong move down to lower lows. That push higher would complete a corrective wave -ii- up shaped as bearish Running Flat corrective structure.
THE AFTERNOON UPDATE, 2-35 PM EST.
As we expected in the morning update, price declined but found support in the Green box:
Normally the wave -c- up has a clean five wave up structure so it starts with a micro i up, ii down setup. Here we may be getting a micro wave i up topping. The corrective pullback in a micro wave ii down should make a higher low retracing 50%-76.4% of the micro wave i up.
NQ produced a corrective a down, b up, c down structure shaped as the Running Flat:
The main distinctive feature of the Running Flat is that while in a corrective phase price keeps making higher highs and higher lows:
This is why the Running Flat is the most bullish corrective structure.