ES came back up to the every same Red target box in another bearish i down – ii up setup.
That is a setup for a drop to 3,198 that would create a deceiving “triple bottom” pattern.
That is a typical bottoming pattern.
price drops in a micro wave iii down to the same level from where it bounced off several times.
Bulls go wild They know what is going to happen next
They load on longs like there will no be tomorrow. Then price starts to bounce as expected but makes only a shallow pullback and stalls. That is a micro wave iv down. And then, finally, it breaks down under the “triple bottom” running stops of all those super confident bulls. They finally capitulate and sell all their longs. Price quickly drops 30 – 40 points under the “triple bottom” making the real bottom this time.
Then in a matter of hours it rallies back over that “triple bottom”. Show is over. Retail traders get fooled again.
The invalidation point to this wicked scenario is the top of the day made at 3,268.25.
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