Bulls Tried To Breakout And Failed. Now What? August 9th Plan
Last week was the tightest range week of 2022 and so far this week, price ended up back inside that exact same range yet again. It’s not a big surprise - we are in peak summer doldrums now from a market perspective. Early August is notoriously low volume, low volatility and choppy. On the 20 year seasonality, early-mid August is the most static period of the year.
That does not mean to be complacent however, and markets are likely waiting on CPI Wednesday to make a move. Moreover, price did do something significant today: It tried to breakout of the week long range we have been, made a new high, hit my 4185 1st target from yesterdays newsletter, and failed.
This explained the back half of day weakness, and while we are ultimately still consolidating in the week long range, this is the 1st warning shot for bulls. In todays newsletter, I’m going to break down today’s trading as per yesterdays trade plan, discussed the failed breakout setup today (textbook example of my core trading pattern), and discuss whether the setup to 4200+ is still in play directly & how to play it