7th Green Thursday In A Row For SPX; Green Friday Incoming? June 30th Plan
As posted extensively, after a 330 point rally between May 24th and June 16h, ES put in its first 6 day buyable pullback leg recently. As written for a week, this entire 6 day pullback formed a textbook bull flag pattern. It no coincidence where we bottomed on Tuesday: Right at support of that bull flag at 4372, and since then its evolved into a fantastic 60+ point rally higher. This yet again shows the power of simple chart patterns to cut through the endless amount of noise and precisely identify turn points.
In yesterdays newsletter, I wrote: “We remain in a highly complex consolidation zone now. 4400-4422=Chop with zero predictability. My general lean is as long as 4400 holds that we can ultimately base more then make a trip to 4433, then 4450 at least”. This played out perfectly and late day yesterday we defended 4400, “based more” as posted, then pushed to 4433+. It is also interesting to note that this was the 7th green Thursday in a row, Friday’s have also been, but a far less so on average.
We are now heading into a period of Holiday Trading on Monday and Tuesday (and seasonally strong). Can ES keep momentum up? In today’s newsletter I’ll address, then I’ll be breaking down one of my entry techniques (the direct level test), and discussing the actionable trade plan for the pre-Holiday session.