Biggest 2 Day Sell Since March 2020 In ES: Big Week Incoming. June 13th Trade Plan

Thursday and Friday in ES put in 2.38% and 2.88% sells consecutively making it the 1st time since March 2020 that ES has put in two back to back >2% sell days of that magnitude since March 11 and 12, 2020. In that sample size of 1, the next day was massively green before down again.

The technical reason for the last two days of selling everyone knows by now: ES formed a picture perfect week long triangle, and everyone knew a big move would come from it. While a triangle after a rally is typically bullish a slight majority of the time as I’ve written, it broke down in this case and as traders we have to react accordingly which is why I said I positioned short in the last newsletter.

If traders thought last week was volatile, I expect this week to be even more complex and harder to trade with FOMC on Wednesday (which has had a tendency to produce violent short squeezes all year). Only reactive, flexible level to level traders will able to capitalize. In today’s newsletter, I’ll be discussing how I traded Friday’s action (the good, the bad, and the ugly) and talk what the short-term bounce window is here for bulls & general plan tomorrow