ES Formed a Falling Megaphone (Red) to Get Back Down Here
ES is back inside the topping triangle it started forming in February and back inside a fake inverse head and shoulders, cup and handle and other trading formations.
Topping triangles usually make fake breakouts to complete.
However, ES formed a falling megaphone (red on chart above) to get back down here.
ES could turn right about here to redraw the little H&S neckline on its short-term chart or it could keep going to the 2080 area before reversing. But it should retrace to roughly the level of the first touch on the top of that red falling megaphone.
That means we’d usually see a big melt-up right shoulder coming up here.
If ES works its way to the top of the falling megaphone but doesn’t break out, it could put in another wave down in the formation before the big retrace right shoulder.
This is a great spot to start watching for mini Sornette bubble melt-up set-ups.