ES breached its H&S pattern by moving past the predicted right shoulder top around 1296.50, and created a short squeeze (or stop run). The price managed to push up to 1314.50 to close the March 9 gap around 1310.25.
We said last week that a bounce was unavoidable; but this bounce was stronger than we expected.
Today is a key decision day for the ES. If wave 4 has not completed, the price need to decline early this week, and move under 1275 to resume its downtrend and then complete wave 4.
But if ES can manage to move above 1336.50 this week, it then confirms that wave 4 is completed and the market is processing wave 5, which indicates ES could move up to 1360 or even higher in the future.
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ESM1 Daily chart
