ES is Probably Going for a New All-Time High to Redraw its Red Megaphone Top
ES is at the top of its navy blue megaphone trying to reach the top of its light blue megaphone inside the orange rising wedge.
Both megaphones require a retrace to VWAP at roughly 2350 to be legal for a breakout upwards, but even if ES goes straight for the red megaphone top, it will need a retrace to the red megaphone VWAP to be legal for a breakout from that.
The green scenario (a flat-topped triangle) is the favorite for now, with the warning that the triangle could fail to complete and ES could go straight for the red megaphone top and through it by roughly the same amount as the March 1 spike to redraw it.
The purple scenario is a gesture to remind you that megaphones inside megaphones can produce all kinds of short-term erratic moves. Also, at any time we could see a price channel or Sornette melt-up set-up form.
At this point I expect ES to redraw the red megaphone and be stuck in it for a long time.
We could also see ES draw a flat-topped descending-bottom megaphone on the chart. That would be the purple scenario with another wave down to the formation bottom.