$ES: Bulls Keep Pushing Into The Red Target Box

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#ES #Ellott Wave #trading setup

Yesterday I noted:

…”At this stage, there’s no sign of bullish exhaustion—buyers look poised to carry ES up toward 5,732–5,747.”…

the whole move up off the early April trough is shaped as a corrective (a) up, (b) down, (c) up structure, a corrective reaction to a strong drop. A three wave bounce like that shoudl be followed by another impulsive looking wave of selling.

ES-mini 120 min chart


But the key question for bears is whether bulls can push ES even higher deeper into the Red Box.

Yes, they can. So far the second leg up only tagged a min required 76.4% extension of the subwave -w- up. More often than not the final leg up becomes the longest one. The final leg up often comes as a culmination of the whole corrective pullback. It mimics behavior of a wave iii up making impression on many traders that they are missing out on a new big rally. This is how a corrective wave lure in traders at its top.

The next resistance is located at a confluence of 100% ext of wave ( a ) up and 123.6% ext of a subwave a of -y- up = 5,732 – 5,723.50.

Levels calculated by my Cycle Trader indicator for TradingView.

The first micro support is the broken Daily resistance 5,635.50.

Break under 5,635.50 would open the door for a decline down to the Daily pivot 5,572.

As long as bulls hold ES over 5,635 the trend is up and bulls will remain in a driver’s seat. That means up will remain to be the path of the least resistance as long as bulls hold ES over 5,635.

We can set a stop for bulls / breakdown level to be watched by bears at 5,600.

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