ES is Likely to Complete an Inverse H&S Bottom on its Brexit Mini Crash
ES is likely to complete an inverse H&S bottom on its Brexit mini crash. It has continued melting up overnight but has formed an extended rising wedge in the process.
If ES should put a megaphone right shoulder on its inverse H&S, it could take out the Brexit low by a bit, morphing the existing inverse H&S into a larger one. But that’s not as likely as when a right shoulder megaphone forms on an upright head and shoulders.
ES still has a mandatory retrace target of at least 2100 to retrace the falling megaphone it formed on the Brexit mini crash.
Complex H&S vs Megaphone Top vs Sornette Melt-Up Set-Up
If ES reverses at 2100, or starts forming a top at 2080 that tags 2100ish, it’s likely putting a right shoulder on the potential complex head and shoulders on the 60-minute chart (purple scenario).
The pink scenario represents a megaphone top from which ES breaks out downwards.
The green scenario is a Sornette melt-up set-up with a target roughly 300 points higher.
The blue scenario is a continuation megaphone with a target roughly 150 points higher.
ES has Confirmed a 5-Year Rising Megaphone
ES has confirmed a 5-year rising megaphone on its daily and weekly charts. That would usually mean a significantly higher high to complete the formation.
That means any downwards breakout from the consolidation on the 60-minute chart would likely be stopped by the bottom of the 5-year rising megaphone (usually there would be a small break of the bottom).