ES has Confirmed a Megaphone (Orange) After Hours on News that China Devalued Again
China devalued again, and suddenly ES is in the megaphone scenario.
The megaphone will likely help ES complete its triangle (pink, below).
ES Triangle
The triangle could break out in either direction, but will most likely break out downwards as ES completes a trip to the bottom of its 3-year+ price channel somewhere around 2020-2030ish.
Update: I forgot to draw it on the chart, but ES could just retrace to 2080ish and then break out downwards from the new orange megaphone and the pink triangle.
ES Accelerated Move Down Scenario
First target would be the bottom of the 3-year+ price channel at 2020-2030ish.
If ES gets through that channel bottom, next stop would be the bottom of a rising megaphone top on the chart in the upper 1990s. If ES gets that far, the top is likely in.
If ES heads down from a 2080 retest into the more bearish scenario, our commenter Eddy has some splainin’ to do, because that was one hell of a good call.