$ES: Not Ready To Trust the Breakout Yet

$ES #ES #Elliott Wave #trading setup

Yesterday bears failed to break the Daily resistance 5,607. In an uptrending market a broken daily resistance works as a strong support. Failure of bears to break that support powered yet another strong move up.

Overnight bulls pushed ES-mini over the July 2024 top made at 5,721.

ES-mini Daily chart

That gap up over that critical resistance makes ES vulnerable for a bearish failed breakout setup.

To trigger that short setup bears need to push ES back under 5,721.

The immediate support is a flat top made at 5,665 in Aug’24.

If we get a move down to that support but bears fail to break under 5,665 that would be a very bad sign for bears and can trigger a crazy short covering rally. That would be the textbook break-n-retest breakout long setup.

But at this point I do not see a reason to chase that move up that happens 24 hours before the key interest rate decision.

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