4 Green Days In A Row For SPX. Are Bulls About To Run Out Of Steam? August 31st Plan

As readers know very well, I was in a long position since last Friday due to failed breakdown bottom trigger at 4385 (my core setup), adding to it dynamically since then as per the trade plans. This trade evolved into the largest gain of 2023 for me in terms of points, and the duration/strength of this trade shows just how powerful the combination of failed breakdowns and runners are.

This trade always had one clear target: 4515. Back on Monday, I wrote “Therefore, the 4515 becomes the broad magnet” and we got there last night and ES certainly recognized the level, spending the last 18 hrs around it. I wrote yesterday: “What does price do after a big move? Base builds. It chops up longs with FOMO, and shorts trying to time the top”, and that’s what it did all day today.

We have now put in 4 massive green days in a row, and in the span of only 4 days, retraced 60% of the selloff that took bears the entire month of August. This rally will, however, get tested with its first proper pullback. When will it be? In today’s newsletter I’ll talk this, I’ll then go over the details of the setup that got me long for yesterdays 70 point squeeze. I’ll then discuss the actionable trade plan for tomorrow.