4 Big Green Days In A Row For SPX, Another Green Friday Ahead? July 14th Plan
As readers recall, this has been a great week for classical technical analysis traders (as most weeks are), with this weeks entire move being driven by a simple, textbook ascending triangle structure which I have talked about since Friday. This basic pattern contained all the price action from the June high. I have been running a long from 4420 as readers know, now up over 100 points, and this 4420 entry was not random being support of this large triangle structure.
Resistance was 4480-90, and it is also no coincidence that ES went parabolic yesterday post-CPI on the breakout of that structure. Simple technicals work, for those willing to tune out all the noise, and media. This run off 4420 has been particularly strong though, with ES not putting in a single 4hr candle that closed below its prior candles low since Sunday overnight - extraordinarily rare price action. This continued today and I wrote yesterday: “My loose lean is that ES can now chop above 4493 and below 4520, then take the trip to 4534 next” and we got to 4534 and beyond today.
The breakout leg continues - where to now? In today’s newsletter I’ll talk this, then I’ll break down in detail my trailing stop methodology that has kept me long all week. I’ll then provide the actionable trade plan for tomorrow.