ES Extends C-Wave, But Bearish Continuation Remains Intact
$E-mini S&P 500 - main 2606(ESmain)$ | Yesterday's first downside trigger didn't fire.
Instead, price expanded the C-Wave into resistance:
Equality (A=C), 61.8% retrace, & Daily FVG.
5 waves down.
3 waves up.
STILL corrective.
→ Next: $SPDR S&P 500 ETF Trust(SPY)$ forms a bullish Daily FVG on this push.
Inversion of that gap = sell signal for the next wave down.
→ Catalyst: CPI Friday.
Leaning sell-the-news ~ pending confirmation.
New levels. Same outcome.
The current $SPY bounce is the largest % rally since the 696 peak.
That means price is correcting at a higher degree, which means the next wave down will also be higher degree.
Whether this labels as a 2 or B wave, what follows is a 3rd or C — neither is friendly.
The bigger the bounce, the BIGGER the drop.
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