$ES: Bulls Need to Confirm Start of the Rally

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$ES #ES-mini #long setup

Bulls can consider the whipsaw of the first two weeks of December as a completed corrective subwave (b) down to be followed by a rally in a subwave (c) up.

ES-mini 120 min chart

Note that by pushing ES-mini back over the Monthly Support 6,864 (got violated yesterday) bulls closed the bears’ trap and triggered the bullish “failed breakdown” setup.

What would be a good confirmation of that bullish setup that allows bulls to start a rally targeting 7,300+?

6,864.50 is the key micro resistance this week. Why? Because that is a weekly support that got broken yesterday. As long as bears hold ES UNDER the broken support the chart will look rather bearish to me.

The morning rally could be counted as a micro wave i up. And the drop that followed could be counted as a of ii. The bounce we are getting now could be b up fo ii down. So for a reliable bullish i up, ii down setup we need to get another push down in a subwave c down that would complete an a-b-c down structure of a wave ii down making a higher low (over 6,772 low made yesterday).

Again, bulls have to reclaim the broken weekly support 6,864.25 to trigger a long “failed breakdown” setup.

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