Since I was writing on Friday the bull flag megaphone has broken up, a rising wedge formed on ES into yesterday’s high and then that wedge broke down with the obvious target at a retest of the retracement low. So far however this has delivered higher lows on SPX and ES, and ES is again testing key resistance at the weekly pivot at 2884. On a break and conversion of WP the obvious read would be that the next leg up has started, although ………
Partial Premarket Video from theartofchart.net – Update on ES, NQ:
…… the ideal target on SPX has not yet been hit, though SPX has come close twice. There is a risk that is unfinished business below, and that the next leg up on SPX will not start in earnest until that target is hit. That leaves a question mark over any impulse directly up from here. If ES can convert 2884 to support today however, then we would likely not make that low today at least.
SPX 60min chart:
