$ES: We Got the Drop to the Demand Zone. What’s Next?

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$ES #ES-mini #first decline #re-accumulation

On Dec 29th I shared the pattern of a re-accumulation:

Back then I noted similarity to then current chart of ES-mini and based on that fractal forecasted an upcoming decline to 4,757-4,737 demand zone:

ES-mini 15 min chart posted on dec 29, 2023

Today Es-mini dropped to 4,737:

If bulls defend the fat green zone 4,757- 4,737 then will have a setup for another big move up. We can not predict whether that attempt to rally will succeed or not. But we can find strong resistance where this rally may fail.

The strong resistance is 4,789.

So if bulls manage to break over that level they will increase probability of the scenario where we get another rally to a fresh all time high by the end of Jan – early Feb.

If bulls fail at 4,790 – 4,800 we will get the lower high, teh Right Shoulder of the bearish reversal Head and Shoulders scenario / setup:

ES-mini 15 min chart

This is how ES-mini looks like now:

ES-mini 15 min chart

In conclusion:

I expect bulls to attempt making a rally off the green demand zone If bulls defend the fat green zone 4,757- 4,737.

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