$ES: Two Scenarios and Two Trading Plans

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$ES #ES-mini #trading setup #Elliott Wave

In the previous update we correctly predicted extension of the rally:

“…stretch higher up to the previously made double top ( 5,588 – 5,585)”.

So ES-mini extended higher:

ES-mini 120 min chart

Let’s see if bears can produce any consolidation / pullback in a subwave -b- down off that resistance 5,585. In an extreme bullish case this rally may extend higher up to the Red box. The next resistance is 5,621, the lower edge of the Red Box.

The Plan A: If we get a flat a-b-c down pullback into the Green Box I would consider it as a long setup to ride another leg up targeting 5,650.

The Plan B: if this rally extends higher and tag the lower edge of the Red Box (5,621) I would be looking for signs of a top and potential short setup.

This is the chart I posted for subscribers of my premium chat room on Wednesday morning:

ES-mini 120 min chart

Essentially we got the cup but we need a handle. A shallow pullback down off the triple resistance line 5,589 would draw that handle of the textbook bullish breakout “cup-n-handle” pattern.

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