ES - that rally is structured as a Double Three corrective structure and it looks very toppy
I count that move up as Double Three, a corrective structure that is composed of two A-B-C structures.
Those two A-B-C up structures are interconnected by a technical wave -X-.
Lets first look at the first A-B-C move up off the mid March low.
ES - 240 min chart updated at 10-20 PM on 6-01-2020
Let’s review the second A-B-C up structure that started off the low made by wave -X- down at 2,717.25.
On the chart you can see:
– the black wave -X- down;
– blue waves A and C up;
– the red wave B down that itself is structured as -a-b-c-.
Note that subwave C has already tagged 123.6% ext of wave A up.
The most important question whether that subwave C up has topped.
On the one hand its wave C has tagged an important 123.6% ext of wave A.
On the other hand, we do not have any signs of a bearish reversal yet.
The price keeps holding inside a bearish ascending wedge and it still has room to keep grinding higher inside that wedge towards its apex.
The micro count on the chart suggests that ES will soon will drop out of that wedge in a micro subwave -c- of wave -iv- down.
But even after that drop ES may come back up to retest the lower trendline, the lower edge of the wedge in the final micro wave -v- up.
In conclusion: ES looks very toppy here, but at this point is is unclear whether it has topped or need one more push higher.
ES - 240 min chart updated at 10-20 PM on 6-01-2020
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