Bulls Drop The Ball, Unable to String 2 Green In A Row. What Now? September 30th Plan

Yesterday bulls broke the 6 red day in a row curse, undercutting the June lows, and putting in a decisive green candle, the largest since September 9th and a great setup for some follow through. Unfortunately, bulls dropped the ball - I wrote yesterday that bulls have failed to string together 2 green days in a row since September 9th, and were yet again unable to do so today, reversing the majority of yesterdays gains.

In yesterdays newsletter, I wrote: “Loss of 3700 is a warning shot that today’s move was a fake-out, with 3685 fail being final confirmation. Loss of 3685 should take us back to 3645-55 then likely to new lows to 3575”. After a fairly clean move downward in the morning, ES then settled at the 3645 zone. This 3645 area served as an incredibly random chop zone, faking above and below all day in extreme chop to close right in the area. Bears have tried 7x this week to lose it, unsuccessfully.

In today’s newsletter, I’ll talk how I traded today’s very messy action via yesterdays plan (the good, the bad, and the ugly), talk about what bulls need to do to sustain a proper rally along with triggers, and talk the plan for what should be a volatile Friday.