$ES: Does that Rally Have Legs to Go Higher?

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$ES #ES-mini #corrective rally

In my Friday report I noted that break under the Yearly S1 support would be followed by an accelerated drop:

I would say we can consider that bullish Triple Three scenario as long as bulls hold ES OVER the Yearly S1 support = 6,592.75:

On Sunday night ES dropped down to the next import level of support, teh Yearly S3 level = 6,508.

ES-mini, TradingView, CAT Opening Range MTF indicator

Send me an email to castawaytrader@gmail.com if you want to test that indicator and get a manual describing how you can use those levels in trading.

Note that the spiky overnight move up stopped right at 6,718, a broken Monthly Support. That means it should now work as an immediate resistance.

Now lets look at a bearish wave count:

ES-mini 30 min chart

So far that spike up looks like a textbook wave -x- up, an emotional short covering move driven by FOMO when too many traders got on a bandwagon driven by fears of missing out a major bottom. More often than not such overreaction to some news turns out to be a short lived move that gets faded fast with another -a-b-c- move down in a wave -y- that should make a new lower low.

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