Can SPX Bulls Close August Green From Here? August 29th Plan
August is nearing its end and incredibly for the entire month, ES has only put in two consecutive green days on one occasion. The latest attempt began on Friday, and as readers recall, I got long at 4385 based on my core, highest win rate trading pattern - the failed breakdown. I held this long over the weekend as mentioned on Friday, and this saw an incredible 60+ points of follow through into today’s high.
I wrote Friday: “Now that 4408 has reclaimed, a bull case may look something like chop between 4423 and 4408 then continue up”, adding “In terms of spots to add on strength, if we can continue basing more under 4423, I may try a risky breakout add at 4426 for a move up the levels” This followed through nicely and overnight, ES chopped under the 4423 level, then put in an additional 25 points of upside today into 4448 resistance, after which it spent all day ping ponging between 4423 and ~4448.
For the second time this month, ES has managed to put in two back to back green days. Can ES finally break its streak and manage the third green day in a row for the first time this month? In today’s newsletter, I’ll talk this, then I’ll break down in detail the setup on Friday that created the recent strength. I’ll then provide the actionable trade plan for tomorrow.