ES formed a late-day price channel (blue in chart above) that topped with a small head and shoulders (pink neckline on chart).
The channel and small head and shoulders carried the price back up to the top of the extended topping megaphones within topping megaphones, as well as to the retrace target for the purple falling megaphone created into the October 15 low.
The price could retest the first rising wedge bottom (bright blue) and reverse there for a fast plunge to the purple megaphone bottom at around ES 1955/SPY 196 (green scenario). Or, it could start megaphoning here and then break out downwards from the megaphone (purple scenario).
Or it could just keep heading up for a breakout through the megaphone tops and form a topping pattern with a neckline at or across those megaphone tops. That topping pattern could be something like a head and shoulders or it could be a rising megaphone sitting on top of the other megaphones and carrying the price a lot further up over a period of weeks.
I can’t fit every scenario on the chart, but in general the play is to stay long until either a breakout downwards from a complete small topping pattern up here, or wait for something like a downward breakout from a larger topping pattern with a neckline near ES 1955.
The price could also correct here, consolidate for a while, and end up breaking out upwards from the consolidation into a melt-up. In that case, we’ll probably see something like a head and shoulders form with a neckline at ES 1955/SPY 196, and then see the right shoulder break out upwards into the melt-up. We’d want to be long for that.
In any case, all will become clear.