The Uber Bullish scenario considers the corrective September pullback completed and this move up as subwave (a) of wave ( v ) up targeting to re-test the All Time High Made 4,540 on Sep 3rd.
I can call it the Uber Bullish because under that scenario ES will be able to make a new leg up in subwave (c) of wave ( v ) up to make sufficiently higher highs later this year (“Christmas Rally” scenario).
This short covering rally should be counted as the “heart” of the rally, subwave c of wave -iii- up.
The micro wave iii of -c- of -iii- up should extend to 100% ext of subwave -a- of wave -iii- up without much pullbacks = 4,464.
Any sufficient pullback overnight will cast doubts about that scenario and will be an argument in favor of the Bearish scenario.
The “bearish” scenario argues that this move up off the early October low is a corrective bounce structured as (a)-(b)-(c).
Under that scenario this short covering rally is the final subwave (c) up and specifically its strongest part in a micro wave iii up.
To get completed ideally we should get a pullback in a micro wave iv down to be followed by another push higher in wave v up. We call that scenario the “Bearish” because after this (a0-(b)-(c) up structure gets completed we should get another strong decline in wave C down into the end of the month.
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