An Incredible 10 out 13 Days In August Red For SPX - Where Does It End? August 18th Plan

Back on Tuesday, bears logged in their first major technical win since mid February. As discussed extensively, this was the breakdown of the perfect rising trendline from the March lows (at 4480 now), and this trendline has controlled the entire 4 month Spring/Summer rally. It ended on Tuesday. As readers know, this triggered short for me Tuesday afternoon, and I was looking down to 4411-03 as an initial major target, and we got there after a fantastic sell. Since Tuesday, “sell the bounce” has been the relentless theme as it always is after a strong support loss.

I wrote yesterday: “My loose lean if I had to give one is we sell to 4411, perhaps 4403 then try a rally there up the levels”. This tracked quite well and we sold down to 4411 target overnight and got a good 30 point rally to 4434-38 major resistance, then retested 4411 again and bounced 16 points before the zone flushed hard late day. Bulls continue to struggle to put in green days in August, and out of 13 trading days in August, only 2 so far have been green and readers can see just how powerful multi-month support losses are.

Is there a relief bounce on the horizon? Today I'll address this/talk where, then I’ll then be breaking down Tuesdays short setup and my approach to shorting in these conditions. I’ll then provide the actionable trade plan for tomorrow.