6 Red Weeks In a Row For ES: Time For a Green One? May 16 Chart

Incredibly, last week in ES was the 6th red week in a row, and this is a very rare occurrence. This not only did not happen during the February 2020 crash, but it also did not even happen during the 2008 bear market which saw no more than 4 consecutive red weeks at a time before a relief bounce week.

The size of this correction in % terms (~20%) is nothing spectacular, but the relentless, grind down over 6 weeks where every few day bounce was sold has been exceptional. Last Thursday, ES put in a bullish daily hammer candle as written in my last update, and finally managed to put in a rare green day on Friday. The weekly candle was also a bullish hammer candle. While there is plenty of optimism over Friday’s close, bears remain in control of this market until proven otherwise. Today I’ll be talking relief bounce targets as well as what bulls need to do to set a “bottom”