If the lows are in on $ES, we may be forming a 1-2 (of blue degree) of a new bullish cycle. If that is the case, I would like to see the 2 stop near these levels—at the 50-61.8% retracement, which we’re dipping below, or perhaps even to the 78.6%, but I wouldn’t like to see it go much lower than that. If we stabilize soon and buyers step in, we may still be forming the right shoulder of the inverse pointed out yesterday.
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