Long term ES is forming a set of rising megaphones inside rising megaphones. Right now it’s working on the pink rising megaphone, and there is a brief window of opportunity for ES to plunge to its bottom, put in a right shoulder bounce, and then crash to the formation bottom at 1250.
But if ES eats up much more time before returning to the pink rising megaphone bottom, it won’t be able to complete a proper head and shoulders top inside it. That would usually mean another new high outside the formation, which would confirm the silver rising megaphone.
And there’s an anchor for still another rising megaphone after that.
There’s still a triangle setting up on the 60-minute chart. If that triangle breaks out downwards, the first target 2150. ES could reverse there to extend the pink rising megaphone. But if ES were to slice through 2150, the green scenario would be a strong favorite.
If the triangle breaks out upwards, there’s no way ES will get to the pink rising megaphone bottom in time for it to complete a proper top. That would mean buy the dip on a break of that formation bottom for a trip to another new all-time high.
So ES has some dips coming. But unless it gets moving down very soon, they’ll be buying opportunities.