Breakout For SPX, Can It Hold? July 20th Trade Plan

Patience has paid off in ES. Since mid to late June, ES has been coiling into a textbook triangle pattern. I had been holding a swing long since 3753 last week as readers here know - in anticipation of the breakout - and we finally got it today. Today’s almost completely one directional action during regular trading hours is characteristic of a technical breakout day.

In addition to a technical breakout, ES is also clearing its 50 day moving average for the first time since it was lost in April. Obviously, this puts bulls in control and I am continuing to manage my swing long but with increasingly tightened stops now, which I will get into today. Now that the breakout has occurred - things get very interesting.

The days after a breakout are critical, as they are when the most violent reversals occur (failed breakouts/traps), or successful backtests that start long trend legs. In today’s newsletter, I’ll be recapping todays trades, talking the big overhead resistances above here, and most importantly, discussing the risks here for longs.