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ES - dropped as expected
On Friday I ES hit my target box and I explained, that the rally was corrective and most likely ES will drop again in another (a)-(b)-(c) down structure. On Sunday evening I confirmed that prediction and wrote that the wave ( a ) down begun. On Monday morning ES keeps moving lower following nicely the triple three structure corrective. When wave XX topped it set a new starting point for another decline in (a)-(b)-(c) down structure. That is why it is fairly difficult to predict where wave ( a ) can bottom. We can use a bigger downward sloped channel and ES may stretch to the lower trendline. Alternatively we can use the first decline in wave ( a ) down after the previous corrective wave X up 100% of that old ( a ) down = 2,817, 123.6% = 2,799.50. But again, that final (a)-(b)-(c) down in the Triple Three structure is not supposed to be deep. We may see a drop to 2,820 followed by a corrective move to 2,850 followed by the final drop to 2,790. That should complete a larger corrective wave ( B ) down and set up a stage for a rally in wave ( C ) of ( 5 ) targeting new all time highs.
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