$ES: Potential i up – ii down Long Setup

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$ES #expected rally #i up – ii down setup

Last week ES completed a corrective -w-x-y- down structure that can be counted as a corrective wave ( iv) down:

ES-mini 120 min chart

Off the low made on Friday noon bulls can produce a five wave up rally that can stretch up to 7,200:

ES-mini 15 min chart

Every five wave up rally normally starts from a micro i up, ii down long setup.

It is possible that the micro wave i up has topped this morning and a corrective consolidation in a wave ii down has started.

My Cycle Trader indicator provides traders with strong intraday levels of support and resistance:

The morning rally stopped right at the Daily Resistance 6,835.

Now the key intraday support is the black Daily pivot = 6,777.75.

posted at 3:02 PM EST

This morning I have prematurely called the micro wave-i- up completed. let’s check the micro tick bar chart:

ES-mini 4,500 tick bar chart

The morning high could be counted as the top of a micro wave iii up followed by a quick pullback in a micro wave iv down. Then, that push up making a new higher high is the micro wave v up that completes the wave -i- up.

That wave count still allows bears to produce a corrective -a-b-c- down pullback in a wave -ii- down.

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