Bulls Defend A 3 Month Trendline, But Can It Hold? Sept 7th Plan
After a typical slow holiday trading session Monday, ES certainly delivered the complexity for the 1st full day of post-Summer trading. It put in a 70 point drop to start the day, then a 50 point rally, then plenty of chop. Ultimately though, since August 26th breakdown, the theme in ES has been “sell the bounce”, with ES only putting in two green days since then, neither of which saw follow through days with selling promptly resuming the next day.
In my last newsletter Friday, I wrote: “My general lean is that we do hold 3975-80 in this rangebound action then test 3885-90 where bulls can try a bounce before ultimately heading lower”. We got that 3885-90 test, and saw a precise 50 point bounce. Its no coincidence where: Right at the core rising trendline from Junes low.
This is last support before another possibly large leg down, and bears have seasonal tailwinds. In todays newsletter, I’ll talk how I traded todays action via Friday’s plan, talk relief bounce targets, and the triggers to get short when it ends.