$ES, $NQ: One More Shake Out Before Rally Resumes?

$ES $NQ #FOMC #Trading setup #Elliott Wave

The uber bullish wave count allows bulls to start acceleration of the rally in a micro wave iii of -c- of -iii- up targeting the Red Box. To invalidate that potential bears need to break under the immediate support 17,623. But so far we only see a textbook shallow corrective a-b-c move down OVER the support, very close to recently made highs:

Let’s zoom in:

We can count the Friday drop as the final subwave c of wave y of ii.

The strength of the overnight move up looks suspicious to me. Looks liek a false start of a rally.

There is a low probability alternative tricky scenario that allows bears to make one more push lower:

WE can see the same possibility of one more push lower in ES mini as well:

Either bears manage to make a lower low to complete a corrective structure or not, I expect bulls to be push ES and NQ to new higher highs soon.

The main catalyst is the press conference of the FED Chairman scheduledat 2-30 PM on Wed. Normally the market does not make big trending moves during firts two trading days of the FOMC week.

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