Bulls are Running Out of Shots: June 2nd Plan
In yesterdays newsletter, I mentioned “Complex trading is ahead” and we certainly got some today. ES Spiked to 4165, sold down to 4095 support, failed, recaptured it, squeezed to 4125, then ended the day at 4095 again. I was expecting a choppy difficult market and the reason is clear: We had a one way trend week last week, and as I say often here, after trends come complex, rangebound conditions where price sees little follow through either way, and that’s what we’ve had since Monday essentially.
There is quite an attractive chart pattern here building for bulls, but so far all rallies have been sold, and bulls are running out of chances to get this going. I expect another day of challenging conditions tomorrow. Here’s how I’m looking to play tomorrow, and where things will get dangerous for the immediate bull case (which is still live).