ES Morning Update May 31st 2023

We likely topped yesterday and are now in the pullback I’ve been looking for, which again should pause at the rising orange trendline as that is support, but ultimately fail and drop to the rising pink trendline by this Friday.

Below is the 3 hour chart, which on it you can see the MACD’s are trying to turn back up from getting close to the zero line.  The RSI won’t quite reach oversold today I believe as the rising orange trendline is pretty close now and will be support.

As far as wave counts I’d called the move down so far an A wave, and when we bounce at some point today that will be the B wave.  This leaves the C wave for Thursday and Friday, which should be a 5 wave pattern, but might not be noticeable on the 6 hour chart.

Really not much to add as everything is going as expected so far. Today might be choppy again with a slight downside bias, but late Thursday or Friday the rising orange trendline should fail and a drop to the pink one should happen. Have a blessed day.