MES - Descending Wedge at 6,900 | Support Zones Below For BounceMicro E-mini S&P 500 Index FuturesCME_MINI_DL:MES1!officialjackofalltrades Executive Summary Micro E-mini S&P 500 futures (MES1!) trading at 6,900.50 within a descending wedge on the 4H timeframe. After the S&P 500's third consecutive year of gains (+16.56% 1Y), price is consolidating below the 52-week high of 6,995. Multiple support zones below offer potential bounce opportunities. Descending wedge typically bullish reversal pattern. BIAS: NEUTRAL - Watching Support Zones for Direction Current Market Data Current: 6,900.50 (+0.12%) Day's Range: 6,866.50 - 6,939.75 52-Week: 4,832.50 - 6,995.00 Open Interest: 130.39K Front Month: MESH2026 Performance: 1W: -1.15% | 1M: +0.51% | 3M: +2.02% 6M: +9.41% | YTD: -0.01% | 1Y: +16.56% Key Market Context S&P 500 just completed 3rd consecutive year of gains 50% odds of 4th straight year based on history Valuation indicators at extreme levels (98th percentile) Breadth oscillators on sell signals Equity put-call ratios rising (bearish) VIX still complacent - bullish for stocks Fed rate cuts expected in 2026 AAII bears at lowest since Oct 2024 Technical Structure - 4H Descending Wedge Pattern: Falling resistance trendline (yellow dashed) Falling support trendline (yellow dashed) Wedge narrowing - compression before breakout Typically bullish reversal (70% break up) Key Levels: Resistance: 6,940 - Day's high / immediate resistance 6,970 - Upper resistance (red line) 6,995 - 52-WEEK HIGH 7,000+ - Psychological / breakout target Support Zones (Purple): 6,860 - 6,880 - Upper support zone 6,800 - 6,820 - Middle support zone 6,720 - 6,760 - Lower support zone 6,675 - Major support (red line at bottom) SCENARIO ANALYSIS BULLISH: Wedge Breakout Trigger: Break above 6,970 with volume Targets: 6,995 (52-week high) → 7,000+ → 7,100 BEARISH: Test Support Zones Price tests 6,860-6,880 first support If fails, drops to 6,800-6,820 Deeper support at 6,720-6,760 Major support at 6,675 (must hold) My Assessment Descending wedge at 6,900 with multiple support zones below. Market breadth weakening but VIX complacent. Expect test of support zones before potential breakout. Watch 6,860-6,880 for bounce. Break below 6,675 invalidates bullish thesis. Strategy: Watch for bounce at 6,860-6,880 support Long on wedge breakout above 6,970 Target 6,995 (52-week high), then 7,000+ Stop below 6,675 major support List your thoughts below!