1 Full Week Of Chop: Breakout Incoming Next Week In SPX? May 15th Plan

Note: This is a re-send of the newsletter for Monday May 15th, that was originally sent out Friday May 12th, for those who didn’t receive.

In yesterdays newsletter, I wrote: “ES has spent this entire week in consolidation mode, building out a range with 4165 or so resistance and 4115 or so support as market repetitively traps “bulls” and “bears”. I then added: “My general lean for tomorrow if I had to choose though is more ping pong inside the range”, and ES took this quite literally. What did ES do today? It rallied to 4165 resistance, sold down to 4115 support which held to set the low of the day.

This was the *third full round trip this week alone* between 4115ish and 4165 with ES stuck on complete repeat all week. Why is ES behaving this way? After last Thursday/Friday’s 100+ point vertical rally, price is doing what it usually does: Spending time building a base, to setup the next sustained, multi-day trend.

But what way will it break? In today’s newsletter, I’ll be discussing this, talking a critical concept in my trading system (level acceptance) then providing the actionable trade plan for Monday.