ES Price Action in the Navy Blue and Bright Blue Price Channels is Maxed Out – Means ES is Starting a Consolidation or Bottom
ES has put in the max number of alternating touches on its price channel (navy blue) and melt-down channel (bright blue) before it must start a bottoming or consolidation pattern.
It will still likely put in lower lows as it bottoms or consolidates. It will almost certainly tag the bottom of its rising megaphone top. From there, you would usually see a bounce into the right shoulder of the H&S on the daily and weekly charts.
Usually a tag of the bottom at this point in the rising megaphone would mean that the top is already in. There are some rare exceptions, and if I see one developing, I’ll post it.
The minimum right shoulder retrace target is 2080. ES is likely to get to 2103 or even 2113.
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