Following path pointing lower

The market followed expectations well today, initially bouncing into the 2374 - 2377 ES target resistance for wave (2) of 3 and then turning down to a new local low in what should be the start of wave (3) of 3.

Therefore, as long as price is below today's high, then the expectation will be for further downside follow through to complete wave (3) of 3, with a current target of ~2357.50 ES before getting the next corrective bounce in wave (4) of 3.

Otherwise, if price were to turn back up and break above today's high, it would leave us with a questionable setup for more downside, and would start to suggest that this pullback off of last week's high was only corrective.

ES M7 - Micro - Mar-20 1254 PM (30 min)
ES M7 - Micro - Mar-20 1254 PM (30 min)
Garrett Patten is a senior analyst at ElliottWaveTrader covering both U.S. and international equity indices as well as stocks.