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S&P 500’s Flat-Topped Megaphone

Published 12/07/2016, 11:02 AM
Updated 07/09/2023, 06:31 AM
ESZ24
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Emini S&P 500

ES Flat Topped Megaphone (Red) within Potential Orange Rising Megaphone

ES has another flat-topped megaphone (red) on its short-term chart. A break through 2213.75 confirms the orange rising megaphone on the chart.

Normally, ES would have good odds of putting in another move to the bottom of the flat-topped megaphone (purple scenario). But on this chart, the purple scenario would take ES back inside its navy blue megaphone, which would commit it to a larger and more time-consuming move down than seems likely as we close in on the holidays.

That makes the green scenario the favorite -- a breakout through 2213.75 for a climb up into the head of a head and shoulders top for the orange rising megaphone. We could also see the red flat-topped megaphone morph into a conventional megaphone. That would mean a pullback from roughly 2218 to 2207 before ES continued higher.

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