$ES: Bears Failed Again. Let’s Look at Bulls’ Arguments

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$ES #ES-mini #Elliott Wave

Yesterday bears failed to push ES lower than support 1.

Moreover, we got a very strong reactive rally.

When we get some overlapping whipsaw on a micro level its time to zoom out and look at a bigger picture.

ES 480 min // MACRO Bullish scenario:

Bulls consider this directionless overlapping whipsaw as all of corrective wave -ii- down or a part of a micro wave -ii down. A wave -ii- down is supposed to be followed by a strong rally in a wav e-ii- up targeting 6,300.

Let’s zoom in to a 120 min chart and I will show you two reasonable paths:

BULLISH MACRO // Micro (i) Bearish:

ES-mini 120 min chart

The bearish micro argues that the sharp drop on Wednesday and this reactive rally that followed are parts of a subwave -b- up and there will be the very last attempt of bears to push ES down that can make a low higher than the low made on Wed morning (6,020.75).

BULLISH MACRO // Micro (ii) Bullish (the “breakout” scenario)

Perm Bulls may argue that a micro wave -ii- down was completed with a spike down we got on hotter than expected CPI yesterday morning:

That very bullish micro (ii) argues that ES-mini has already started a rally in a subwave (a) of wave )iii) up that should stretch at least to 6,165 and then consolidate in a subwave (b) down over 6,120 (the breakout line ).

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