5 Red Days In A Row For SPX, Can Bulls Relief Bounce? Sept 27th Plan
After last weeks post-FOMC spike on Wednesday, ES has been in one directional free fall, putting in 0 green days. In fact, in the last 10 trading days, there have only been two green days. They were small and non-consecutive, and ES has not put in more than 2 straight green days in a row since September 9th.
Anyone who has traded/studied any bear markets (including the one this year), knows how this ends: The same way these consecutive melt-downs always do - with a violent short squeeze. However, more money is lost trying to bottom-pick and catch these than anything - one must know the triggers and wait patiently for them.
After multiple days of red, ES put in a classic/choppy consolidation day today to digest last weeks selling and market was in a balance all day. In todays newsletter, I’ll be talking how I traded today’s messy action via yesterdays plan (and talk the few actionable setups today), talk what the triggers are for a short squeeze, then talk the plan for tomorrow.