$ES: Bulls Have Room For Another Push Higher

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$ES #longsetup #a-b-c- pullback #sharp c drop

Yesterday we nailed the top of the wave -iii- up and correctly predicted a corrective -a-b-c-d down structure to unfold.

This morning we got a sharp drop in a subwave -c- down that has hit the green Demand zone:

ES-mini 15 min chart

That sharp drop completes a corrective -a-b-c- down structure.

A completed -a-b-c- down structure is a base for another push higher in a micro wave -v- up.

The key levels for today calculated by the Cycle Trader indicator:

The key resistance is the Daily resistance 6,470. Bulls need to reclaim that level to confirm the bullish scenario described above.

If bulls fail to get back over 6,470, the decline may extend down to the daily pivot 6,444.50.

published at 3-16 PM EST

Bears tested the green demand zone twice today but failed to break under that zone.

Bulls have a micro setup for a push higher to the red target box in the final subwave -c- of wave -v- up:

ES-mini 15 min chart

Note how bulls stepped in when price dropped down to the Daily resistance:

Every time bears tried to reclaim the broken daily resistance, bulls started to buy pushing price back over that red line 6,470.

The levels are calculated and drawn by my Cycle Trader Indicator for TradingView.

That is a repeating pattern that can be explained by the cornerstone principle of technical analysis:

“Broken resistance turns into a trailing support”.

Memorize another one rule of thumb:

“while in an up trending market, price spends 85% – 90 % of time OVER the broken daily resistance”.

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