Calm Before The Storm For SPX? May 9th Plan

On Thursday and into Friday, ES put in the second largest green day of the new bullish cycle which began back on March 13th. As I have said every single day for 2 months, ES remains in an extreme dip buy regime, and last weeks sell only charged up energy for an even bigger rally.

As readers know, I got long last Thursday at 4086 based on the textbook bullish failed breakdown setup which ignited the squeeze and provided the long trigger. After a major rally though, ES spent most of today doing what price always does: Chopping, and I wrote in my last newsletter that there was a high risk of consolidation today and that “markets love to chop people up in ranges after squeezes”. Chop people up it did today, ping ponging in a 20 point range all day.

Of course though, quiet consolidations setup new big trend moves. Is another leg incoming? In today’s newsletter, I’ll be addressing this, breaking down how I traded this range today via the prior trade plan (failed breakdown entry), then providing the actionable trade plan for tomorrow.