Bulls Drop The Ball On A Golden Setup: Sell Incoming? Weekend Wrap Up

On Wednesday, I was looking for a rally to 4445 off the 4385 level. We got there, and in doing so, ES had a fantastic setup: A nice big green daily candle - the biggest since this selloff started in late March - right off the 50% fib retrace of the March rally. On top of that, it even reclaimed its 50dma. After a couple weeks without 2 green days in a row, this was a high probability setup. *All* bulls had to do, was clear that 4445 level, and they tried, and failed.

Ultimately, nothing happened today technically: We are still in that same range from 4385-4445 we’ve been in all week. But botching a very nice setup isn’t a good sign. In todays weekend wrap up, I’m going to talk about why more selling is likely next week, and where it will reverse. I will also touch briefly on my philosophy on counter-trend trading. Important spot here