Tuesday’s session was more of the same action as the market remains stuck within our immediate range levels. If you recall, the bulls tried to break above last week’s 3150s range high on the Emini S&P 500 (ES), but price did not have the strength to conquer it. Instead, the ES micro-double topped in the mid-3140s and spent the rest of the day grinding back towards the 3110 gap fill/prior day’s closing print.

The main takeaway remains the same as the price action remains stuck in an overall daily pattern of 3231.25-2923.75 where a temporary top and temporary bottom were confirmed a few sessions ago. The ongoing battle remains tough for both sides because the longer this thing consolidates in a high-level consolidation; the better the outcome for the ongoing bulls. This is why it’s critical for gummy bears to act now and entice the real, big, bad bears to rotate back into town.

What’s next?

Tuesday closed at 3112.75 on the ES as a doji candlestick, meaning that the price action remains indecisive within this high-level consolidation/bull flag environment. My game plan:

I am neutral to immediate bullish at the moment going into this week given the ongoing battle on ES in regards to the immediate range vs overall daily range (3156.25-3027.25 within 3231.25-2923.75).
Zooming in, the immediate range has widened a little bit to 3027.25-3156.25 given last Friday and Sunday night’s price action movement.
Price action has consolidated in a decent manner as a bull flag/continuation pattern for the past few sessions; it’s been the same old story almost every single week or two since the March 23 lows. The bears are running out of time against the consolidation patterns, and the bulls are doing the same old trick at trying to end Fridays/monthly closing at/near the dead highs. Not rocket science when above support.
In addition, if you’ve noticed, June 15 to June 19th was a retracement week that covered up 38.2-50% of the losses of the June 8 – June 12th week. The indicates that the immediate bears are not as strong as projected as we confirmed the 2923.75 temporary low from a few days ago.

See chart reviews and projections on the Emini S&P 500.

Ricky Wen is an analyst at ElliottWaveTrader.net, where he hosts the ES Trade Alerts premium subscription service.

© 2020 Copyright Ricky Wen - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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