$ES #ES #trading setup
updated at 3-54 PM EST
Yesterday I shared expectations for a drop down to 4,160:
Today the target has been hit:
Bears can undershoot the important support at 4,160 by 10-15 points but then I will expect a strong bounce back over that level in a corrective wave (b) up to 4,290.
AFTERNOON UPDATE, 3-54 PM
Today bulls managed to violate the key support. They broke the neck of the rally and confirmed there would be no higher highs over the Jan22 highs at least for months to come. The paradox of the market, though, is that break of any important support almost always triggers a corrective reaction.
Bulls normally step in and produce a strong bounce trying to save the face and pretend like nothing serious actually happened. And that corrective bounce should be followed by a strong leg down.