ES - we got the expected pullback. Now what?
My expectation was that many traders would turn bearish once price gets to 2,940sh and fail to break out right away.
What I personally found out that not only we should try to identify a pattern in play but we should also look for patterns that could be technically invalid but anyway would be recognized by the crowd. I spotted that triangle formation drawn by S&P 500 cash index (see the chart below). I my previous updates I explained in details that this structure had several flaws. Moreover, if we look at a micro count in ES-mini we will see that wave (d ) would make a lower low under the low of wave (b ) down that contradicts the whole idea behind a triangle structure. But people normally see what they like to see. And this formation look similar to a textbook corrective triangle pattern. My expectation was that we would get some pullback and then market will rally again finally taking out that 2,945 resistance in ES.
SPX - 5 min chart updated at 4-00 PM on August 30, 2019
I still have the same primary count that expects another push to a higher high after this pullback. And that push higher would make many bears to cover shorts and set up stage for another major leg down in wave ( c ) of B down.
ES - 240 min chart updated at 8-50 PM on 9-2-2019
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Previous Updates:
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