ES has reentered its blue rising megaphone and made a new high inside after reentry. That’s classic.
Now it is trying to work its way back to the formation bottom to complete a head and shoulders top and break out of it (green scenario).
ES never retested 2300 after breaking out through it, and would usually retest that level sooner rather than later. And 2300 is inside the red megaphone. That means when ES reenters the megaphone for the retest it will likely not break back out of the megaphone but instead follow through with a trip to the megaphone bottom.
So there’s a decent chance ES is topping right here (green & pink scenarios).
But ES has also left itself plenty of outs if it wants to extend the blue rising megaphone (orange scenario). And when the first two waves of a rising megaphone are as close together as those in the blue rising megaphone, the formation usually extends.
Also, the technical target for the upwards breakout from the head and shoulders on the daily chart is roughly 2400.
So there’s a good chance that ES will put in at least a retest of the red megaphone top from here. If it reenters the formation, it’s a set-up to short. If not, ES will be moving up fast into the head of a H&S top sitting on top of the red megaphone.