Here is the updated version of the daily bar chart of the June e-minis which I discussed last week.As you can see the market has dropped into the strong support zone which I had highlighted in that post. The next development should be a rally to 1340 or so which would represent the fourth wave of a five wave consolidation triangle (thinner purple lines). A subsequent break of 30-40 points down to the lower edge of the bullish trend channel I have drawn should complete the consolidation.
I think this triangle will be resolved by an upside breakout which should bring the ES at least to the 1440 level. I should point out that the bearish sentiment revealed by the put-call numbers is as high or higher than it was at last year's July and August low points. Those lows were followed by a 370 point advance in the ES. A similar rally now would put the ES above the 1600 level.
