1 Full Week of Chop For SPX; Breakout Incoming. March 1st Plan
In yesterdays newsletter, I wrote: “Take careful note of the fact that we are in a massive, 1+ week long chop range between 4020-3950. I will be taking profits very fast…Level to level to only until it clears and do not get greedy.” This was certainly on point today, and ES followed the choppy trajectory shown in yesterdays chart by the directional arrow.
Within this 4020-3950 range, we made the round trip between ~4k and 3970 *3x* in the past two days. When in these situations, it is important to zoom out and two things are clear: 1) We are now 5 daily candles stacked side by side, and these has formed a new chart pattern, and 2) All ranges like this lead to trend moves.
In today’s newsletter, I’ll discuss what pattern is forming/targets, providing my guidelines for staying out of trouble on choppy days, then provide the actionable trade plan for tomorrow and get setup for any breakout.