Either ES Puts in a Serious Double Bobble Here or Its Going to Put In a Top Before a Trip to the Orange Megaphone Bottom
There’s still a potential Sornette melt-up set-up on the chart (purple), but we haven’t seen enough pushback from the bears to make it likely. A Sornette melt-up set-up is about overwhelming bullishness overcoming a strong fight from bears, not a short squeeze that will soon run out of juice.
The price action on the move out of Wednesday’s low looks more like a 5th wave for the orange megaphone, which is another way of saying bearish capitulation.
That means ES will likely put a head and shoulders top at or across the orange megaphone top before a trip to the megaphone bottom and back to VWAP for a decision.
Otherwise, we need a bigger dip here to create a proper double bobble for a Sornette breakout, and then it would have to be followed by another serious skirmish for a second bobble and a genuine breakout upwards on real energy.
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