$ES #ES-mini #trading setup
I count that rally as a corrective bounce in a subwave (b) up that should be followed by decline in a subwave (c) down.
5,333 remains to be the key level of resistance’. Bears need to keep ES under that level to trigger the failed breakout setup.
If bulls manage to defend 5,333, the broken resistance that turned into a support, they will be able to push ES-mini higher up to the Red Box that starts at 5,420.
But why this corrective rally is sooo strong? Let’s zoom-into a 240 min chart. I think its that strong because bulls treat it as an unfolding impulsive five wave up rally:
Look, that five wave up structure may top at 5,443, pretty close to the negative 138.2% ext, a typical target for a very strong wave (b) up under the Running Flat corrective structure. Under that bullish micro five wave up count, ES has been consolidating in a micro wave iv down digesting the strong rally we got last week. Here we see again, that the resistance 5,245 once broken turned into a support. Bulls will fight hard to stop bleeding over that support 5,245.
Right here the first micro support is 5,328, the broken Daily Resistance. Break under that level will allow bears to attack the next strong support 5,245. Bulls will most likely fight hard to stop bleeding over that support 5,245. If they succeed, they will have a micro a-b-c down pullback to consider a long entry for another push higher ion a micro wave v up into the Red Supply zone.