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Emini S&P 500: Overnight Price Channel

Published 06/29/2015, 08:32 AM
Updated 07/09/2023, 06:31 AM

Emini S&P 500 Chart

ES has formed a price channel (bright blue) overnight and is working on the critical decision wave of the channel.

This is the wave where ES either begins a top for the channel (purple scenario) or sets up a breakout into a series of melt-up channels (green scenario).

The melt-up set-up would be a break of the channel top, a partial pullback into the channel or retrace to the channel top, and then a breakout past the first breakout high.

Or ES can kill the channel right here by breaking out its bottom before putting in a new channel high.

If ES puts in the purple scenario, see the post “Critical Lines” for targets and support below. The green scenario would mean a larger triangle or megaphone is forming.

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