7 Red Weeks In A Row For ES, 4th Time In History. Green Week Ahead? May 23rd Plan

ES/SPX set an unfortunate record last week, closing down 7 weeks in a row as much publicized. This happened 3 other times in history (2001, 1980, 1970), two of those (1970 and 2001) went on to set an 8th red week which is the all time decline record.

Putting in 8 red weeks in a row is obviously statistically quite rare, and bulls did put in a *very* intriguing setup Friday afternoon. In my last newsletter on Thursday night, I wrote: “Tomorrows close should make things fairly clear. My very loose lean, would be that we drop down to 3815-05 then squeeze for a Friday afternoon rally and green close”. This is what happened with great precision and we free-fell into 3815-05 (3808 low) then surged 110+ points in a classic, bear market short squeeze.

Futures have now opened very green. In tonights newsletter, I’m going to discuss to setup that happened Friday afternoon and most following here for a while will not be surprised as its one that I trade all the time, and one we’ve seen before in this corrective phase