$ES #ES-mini #trading setup
ES-mini keeps moving down in a five wave down structure. The target for that overnight decline in a subwave c of wave iii down is 4,767:
The wave v down should be able to test 4,751 with potential extension down to 4,741.
A drop to 4,741 (in the course of the next leg down) would allow bulls to play their favorite “failed breakdown” long setup. The previous drop bottomed at 4,743,25.
A new lower low made under 4,743 followed by a recovery would trigger a short covering rally.
In the majority of cases big reversals are shaped as Head and Shoulders patterns.
Under the bearish scenario, bulls should attempt pushing ES-mini up off the Green Demand Zone but that attempt should fail at 4,790 – 4,800. That failed attempt to rally would complete the Right Shoulder of the bearish reversal H&S pattern and set the stage for a bigger decline.