$ES #ES #trading setup #Head and Shoulders
ES-mini futures keep leaking down in a five wave down structure off the last high made at 4,841.50:
Yesterday I noted: “The target for the subwave c of wave iii down is 4,767”. ES-mini has hit that target.
The wave v down should be able to test 4,751 with potential extension down to 4,741.
Again, our expectation is that a drop into the Green box with potential undershot of 4,746-4,736 support would be followed by a bounce back up to 4,790 – 4,800 (see the expected path I posted yesterday below):
Let’s zoom-out to a daily chart:
4,736 is a very important support.
Bears need to break under that level to confirm completion of a monster rally in a wave -b- up.
But there is a risk for bears that bulls defend that support and as a result the subwave -b- up will get extended one more time to a slightly higher high 4,870. Bulls will try to push ES off 4,746 – 4,736 support. If bears manage to stop that bounce at 4,800 that would be an attractive short setup.