ES1! Short - is deeper correction on horizon?
We have seen very nice drop from 10th May to 13th May which could be considered just as back to the mean test of averages. This drop was followed by bounce from 55EMA which looks like "dead cat bounce" at the moment as this bounce was hardly rejected yesterday. There are two important levels to watch right now - 4029, low from 13th May and 4004 - .236 fibo shallow retracement line of wave from October 2020 which I think is highly probable to visit in next few days. We can bounce from these levels but if we reject them and close below we can be watching possibility of much deeper correction as this is going to trigger Dow Theory Sell signal. In that case, I expect shallow retracement to .236 fibo from 2020 bull run which is 3761 level. Interesting is that on monthly perspective this could take us back to the reasonable levels of the channel for further continuation of bull market or to continue into the bear market. Let´s see what direction market choose.
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