/ES Is Set Up to Break Below The Equidistant Channel
Back in August, the SPX traded at the PCZ of a Bearish Butterfly with some Cypher Confluence and I played it through SPXL, a 3x Return ETF via puts, as seen here:
At the same time, the E-mini futures were trading at the PCZ of a Potential Deep Gartley which we now know to be a little bit more than Potential. Since then, it has broken through Local Supports and has formed a small intraweek trading range that seems to have been working on a redistributive price action over the last few weeks, as week by week, Positive Interest has continuously weakened and Negative Interest has gotten more and more aggressive. If this trend continues into the upcoming trading session, we will likely break below the range this week and target the levels of $3700-$3600, which would take us below all the Demand Lines of the Equidistant Channel. This would then set the price up to begin a bigger Bearish move that could end up taking it all the way back down to the 2020 and 2016 support levels.
At the same time, the E-mini futures were trading at the PCZ of a Potential Deep Gartley which we now know to be a little bit more than Potential. Since then, it has broken through Local Supports and has formed a small intraweek trading range that seems to have been working on a redistributive price action over the last few weeks, as week by week, Positive Interest has continuously weakened and Negative Interest has gotten more and more aggressive. If this trend continues into the upcoming trading session, we will likely break below the range this week and target the levels of $3700-$3600, which would take us below all the Demand Lines of the Equidistant Channel. This would then set the price up to begin a bigger Bearish move that could end up taking it all the way back down to the 2020 and 2016 support levels.
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