$ES #ES-mini #trading setup #Elliott Wave
The bullish wave count allows bulls to produce another stromg rally into Nov 24 US elections in the final subwave (c) of the wave (v) up:
But before the wave (c) of (v) up can start we need the corrective subwave (b) down to bottom.
My wave count argues for another leg down in a subwave -c- of wave (b ) down.
I expect two most probable paths for that decline:
That chart allows bulls to play a bullish reversal powered by one of two potential bullish Inverse Head and Shoulders setupts:
(1) Bulls can stop the expected decline at the upper blue line (5,307 – 5,300) and turn it up. Think of a bullish cup-n-handle pattern. ES has completed a cup, now we need it to complete a small handle.
(2) Alternatively, the decline I expect may extend lower down to the Green Box and that would be the right shoulder for a bigger bullish Inverse Head and Shoulders.
In both cases, we need a move down to draw a smaller rounded or V-shaped handle before price comes back up to the neckline 5,370. I expect a pullback off that 5,370 level to create a bear trap. This is what bulls need to power a breakout that should follow.