ES Holds Support of Its Massive Head And Shoulders Pattern - for now. Feb 23rd Chart & Plan

In yesterdays plan I shared I was looking for a pullback into 4260-80, then relief bounce with resistances at 4340, then 4395-4400. We sold into that level, relief bounced, then rejected a little above 4340 after a brief overthrow. I thought the rally would have a little energy to go higher before rejecting but not today.

The real important thing that happened today (and yesterday) is that ES has now defended *twice* the support of the massive, bearish head and shoulders pattern that by now, every technical analyst on planet earth is watching. The market is not going to make this pattern easy (if it does break down, its probably going to trap a few times first) and with support defending today, I suspect we are not done on the upside. I’m going to discuss how I think this pans out in todays letter, plus share an interesting note on how markets have performed after major war events