$ES and $NQ: Move Down is Extending

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$ES $NQ #a-b-c move down

The wave count argues that bulls have completed a wave ( iii ) up, the strongest part of the rally. According to that wave count ES-mini is in a corrective wave (iv) down shaped as (a) down, (b) up, (c) down structure:

ES-mini 120 min chart

For clean completion of that structure we need bears to push the second leg down to a lower low under 6,655.

Bears have broken the Monthly Support 6,747.50:

The S1 support is 6,587.50.

The S2 support is 6,549.50.

The S3 support is 6,526.00.

On Friday we correctly identified a short setup in NQ-mini:

Note that NQ-mini has tested the Red Box this morning and got brutally rejected.

On Friday afternoon I concluded: “bulls will be able to test the upper edge of the red box at 25,500 before NQ takes a dive.”. This is exactly what happened this morning. Bulls tagged the lower edge of the Red Box, then bears stepped in and turned the NQ down.

Note how bulls failed to reclaim the broken Monthly Support 25,282.

That is the textbook bearish sequence: (i) break under support, then (ii) retest the broken support from below, (iii) failure to reclaim the broken support triggers a new wave of selling targeting new lower lows

The S1 support is 24,298.

The S2 support is 24,065.

The S3 support is 23,922.

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