ES has Formed a Rising Megaphone (Red) and Needs a H&S to Complete It.
ES has confirmed a rising megaphone (red on chart) and needs a head and shoulders top to complete it.
ES could put in a little pop to the top of its flat-topped megaphone at 1990 to put in a head on the H&S and then return to the rising megaphone bottom for a right shoulder and breakout downwards (green and pink scenarios).
Or it could put in an interior rising megaphone for its final wave up in the red formation to get ES to 2200 and then start a head and shoulders top there (purple scenario).
The rising megaphone means you’re safe to be long until either a breakout from the formation after a H&S top has completed inside it, or until a higher high after breakout if a H&S top fails to complete inside it.