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ES Continues To Move Sideways To Complete A Top

Published 03/23/2016, 10:08 AM

E-mini S&P 500 (ES) Chart

ES continues to move sideways to its red rising megaphone bottom to complete a top.

ES continues to move sideways as it rolls over into a correction.

There are mandatory retrace targets for this move at roughly 1930, 1875, and 1805.

Yesterday and overnight, ES has been forming megaphones inside megaphones across 2038.50. That would often mean a triangle is forming. The triangle, if it completes, could break out downwards to launch the coming correction or it could break out upwards into the head of a head and shoulders top on a larger head and shoulders.

ES is essentially replicating the set-up and price action of the spring and summer of 2015.

ES’s last trip to the top of its topping megaphone ended with an exact touch on the top. A move like this would virtually never end with an exact touch on the top of a topping megaphone.

Chart 2

ES turned after an exact tag on top of the blue topping megaphone – means higher high is likely.

Original post

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