A Rare Green Day for ES: Can It Break The Cycle? May 24th Plan
In yesterdays newsletter, I discussed a fairly powerful/commonplace bullish setup that had formed in ES (and one we had seen a few times since this corrective cycle began): The fake breakdown/daily hammer candle setup which presented on Friday. ES undercut the May 4th low Friday, ran stops, recovered it. Today, we got some mild follow through and ES put in a daily hammer candle, then today, followed through with a rare green day. 1st upside target of 3980-85 was hit.
Of course, because we are essentially in a bear market, all bullish setups need to be taken with a massive grain of salt because they will mostly fail, and since March 28th, we’ve had *four* relief bounce legs, all of which failed. At some point, this cycle will break and ES will put in a longer bear market rally, lasting weeks. Today, I’ll talk about bear market rallies, and how far I see this one going