ES Daily: Nice H&S formed in the ES.  Today's low hit the bottom of the neckline to the tick (5/18 low of 875.25)!  Time for the neckline to break. 

If we are starting the larger Elliot Wave 5 down, then this could be the beginning of it.  Wave 5 has five sub-waves.  If this is the case, we have witnessed wave 1 and wave 2 (nice 50%-61.8% ret of Wave 1) and are beginning wave 3.  Some Wave 3 targets are below.

The bullish argument is that the recent pullback is merely the Wave 4 of the the five waves up.  If so (assuming we rise from here), some targets of Wave 5 is 1055 to 1167.  See below. 

 

Also note that this 1055 area also cooresponds with the 50% retracement of "wave 3" (on the ES Weekly), as shown below.

 

Lesson