$ES #ES-mini #rally extension
ES mini keeps climbing higher as expected:
ES- mini 120 min
Lets look at a micro count:
ES-mini 5 min chart
The pre-market drop can be consider a micro wave iv down and that push higher can be counted as a micro wave v up of -a- of -iii- up.
That rally will hit a resistance at 6,547 – 6,550. Then I would expect a flat a-b-c down consolidation in a subwave -b- down of wave -iii- up.
So I expect to see more whipsaw around or right on top of the Monthly Resistance 6,516.25. That whipsaw would build a base for another leg up to 6,640 (the lower edge of the Red Box shown on the 120 min chart shown above).
published at 12-49 PM EST
We correctly predicted a decline but it has come in a stronger form.
ES-mini 120 min chart
That pullback has not violated any key support so far. It can still be interpreted as subwave a of wave -b- of -iii-, which leaves room for the bulls to launch another advance in subwave -c- of wave -iii- toward the Red Target Box.
This morning’s decline found support precisely at the Daily Resistance level of 6,464.25.
These levels are generated by my Cycle Trader indicator. According to the rule of an up trending market:
“Price holds above broken resistance 80–85% of the time.”
This is why, once resistance is broken, it often acts as trailing support during an uptrend.
Therefore, you can now set a protective stop for long positions under 6,464.25.
For instant notifications whenever I post new updates on my website, I invite you to join my Telegram group.