$ES #ES-mini #trading setup #Elliott Wave
The rally stopped at the critical juncture, a 76.4% retracement of the July decline:
The 76.4% retracement is the last line of defense for bears, the point of no-return for bears.
If bulls manage to push ES over that level (5,582.75) that would confirm we are in the subwave (a) of wave (v) up.
The normal target for the subwave (a) of wave (v) up is the previous high made by the wave (iii) up. So that confirms my micro count that argues for another push higher in a micro wave -v- up targeting 5,730 – 5,790:
Let’s come back to the Daily chart shown above:
Once that five wave up structure of the subwave (a) of wave (v) up is completed (I am talking about the reactive rally off the last Monday panic bottom), we should expect a flat a-b-c down consolidation in the subwave (b) down of wave (v) up.
That flat a-b-c consolidation should be followed by yet another very strong and possibly the very last rally in the subwave (c) of wave (v) up.
Please note that if bears manage to defend the resistance 5,582.75 bulls will be left with a corrective rally that could be counted as a wave (x) up. A wave (x) up should be followed by another -a-b-c- down structure of the wave (y) down. This is why ES is consolidating under that key resistance 5,582.75. This is why its dramatically important for bulls to take out that level.