9 of the 10 Last Weeks Red For ES, Major Supports Below: June 20th Chart Plan
Quite incredibly, SPX is now down 9 out the past weeks, for the third time in its entire history (1970, 1982, April 2001 being the priors) demonstrating how rare the current bearishness is. In none of those cases, did it mark anywhere near a bottom but in April 2001 it mark the start of a 7 week bear market rally before the bear market continued for nearly another year. Like those examples, the bottom likely is not in here yet, but there are some opportunities for shorter term bounces coming up.
Friday’s action in ES was a “balance/consolidation” day: ES chopped up bulls and bears to close the day roughly flat, and we have now been basing for 3 days between 3640-3710ish and the breakout of this will determine the next 100+ point trend leg. It’s a long weekend (ES closes at 1pm tomorrow and the NYSE is closed all day), so in today’s newsletter I’ll be talking bigger picture supports, the immediate setup for a relief rally, and also talking my favorite setup (the fake breakdown - there was 3 last week)