$ES #ES-mii #Elliott Wave #long setup #tradimg setup
PCE data has been released without any surprise.
I think that slow grinding rally we got this week was a premature attempt of bulls to make the final push higher targeting the Red Box:
ES-mini 120 min chart
Let’s zoom-in:
ES-mini 120 min chart
This is what happens when bulls try to start a new impulsive move right after the very first move down (the first leg in a subwave -a- down). Because they feel so bullish so they just can’t sit tight and wait for the whole -a- down, -b- up, -c- down structure to play out, the move up off the low of the subwave -a- down does not have power for sustainable move. That wave -b- up often manages to make a nominally higher high but then rally gets exhausted and rolls over.
Zooming in again:
ES-mini 120 min chart
In that type of a very bullish Running Flat corrective structure a subwave -b- up makes a higher high and then we get a shake-out drop in a subwave -c- down.
The hallmark of the Running Flat structure is that the subwave -c- down is shaped as a sharp drop that is supposed to shake off weak bulls’ hands.
The subwave -c- down may stop at 76.4%, 66.7% or even 61.8% extension of the subwave -a- down. In other words, the second leg down in a wave -c- down may come as a quick and short move down making a substantially higher low in comparison to the low made by the wave -a- down.
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