ES is now massing at the top of its latest falling wedge. Prices tend to break out upwards soon after you see this kind of massing.
In a perfect world, ES would complete this mass as a little interior falling wedge. It would need a small fake breakout, then a lower low, to do that.
After something like that, you’d seldom see a lower low after the breakout upwards from the wedge.
If you traded the US Dollar Index back when the dollar seemed like it would never stop falling, it bottomed with exactly this type of massing within a falling wedge.
There’s a lot going on in the chart, including a falling megaphone and a different falling wedge and a bunch of potential megaphones that haven’t confirmed but still could. So the bobbles on the rally that’s likely coming could look different from what I’ve drawn.
In particular, it would be nice to see the upwards breakout turn pretty early into a Sornette bubble set-up. This could easily happen around the level of the second touch on the top of the purple falling wedge.