ES Sequence Coming Together 8/20/2020

ES at the daily view.

The ES is behaving pretty predictably actually. I guess we know how this would end.

1) ES reaches all-time highs.
2) Overly eager bears will force their vision of a double top pattern followed by their dream of a crash.
3) Bears short with their leftover ammo then place their short stop at the most obvious place (around 3400).
4) High liquidity sets up a bounce from support and grind back to ATH.
5) ES reaches 3400 and the bears short cover again.
6) At that point, the bears and sideliners will scramble to go long on the ES.
7) When all the bears finally give up, that's when the correction finally happens. That's when sidelined money is then committed. Liquidity should be decreased by then.

If I were to guess, we would probably see 3500-3600 before we see a correction. But I'll take it one day at a time.

So far steps 1-3 occurred. I'm awaiting for steps 4 and 5.