$ES #ES-mini #trading setup #Elliott Wave
ES-mini should be in the final innings of the wave ( iii ) up of the five wave up rally that started in October 2022:
That wave ( iii ) up should be followed by a corrective (a)-(b)-(c) down pullback in a wave ( iv ) down. The main features of the subwave (c) of wave ( iii ) up is that it (i) normally has a clean five wave up structure and (ii) it loves to extend.
The ideal target for the subwave (c) of wave ( iii ) up is a 138.2% ext of the subwave ( a ) of wave ( iii ) up = 5,275 (Jun 2024 contract). That level has not been hit yet. I would not be surprised if bulls slightly overshoot that target.
If we zoom-in to a 120 min chart we can see that the micro five wave up structure of the subwave (c) of wave ( iii ) up that started in Oct 2023 allows bulls to make one more push higher in a micro wav e-v- up:
On Friday ES-mini almost tagged the Green Target box. the good thing for bulls is that this second leg down labelled -c- had a clearly corrective a-b-c down subdivision. That supports the bullish scenario that argues for another leg up in a wave -v- up to come out of that decline. Ideally I would like ES to kiss the Green box (starts at 5,156) before it turns back up.
That next leg up in the micro wave -v- up may stretch higher up to the Red Box, 5,322 – 5,388.
Then I would expect a quick drop down in subwave (a) of wave (iv) down that should violate the neckline 5,156.