We are currently seeing a very flat and shallow consolidation. Despite its limited depth, this entire structure may still represent the full extent of wave ii down.
ES-15 min chart
Corrections come in two forms: through price and through time.
Both serve the same purpose — to make bulls either nervous or bored. In both scenarios, bullish traders begin to doubt the continuation of the rally and start closing long positions. That shift in sentiment naturally attracts short sellers.
A market cannot move higher when the majority confidently expects it to move higher. Bull markets rise along a “wall of worry,” fueled by skepticism, hesitation, and—most importantly—short positions.
Short covering is what propels markets to new highs. This is precisely why pullbacks are necessary. When the market runs straight up with no pauses, bears lose conviction and exit early. Once those shorts are gone, the market loses the fuel it needs to continue its climb.
It’s the simple, timeless mechanics of a healthy bull market.
the safe approach to go long is to wait until bulls finally manage to break over the weekly resistance 6,850:
ES-mini 15 min chart
The weekly levels are calculated and drawn by my brand new TradingView indicator.