Can SPX Bulls Rally Into The Big FOMC Meeting This Week? September 19th Plan
Since the Thursday September 7th low, I had one target in ES which I talked about daily: 4565 and on Friday we hit it triggering shorts for what turned into a violent, 70 point selloff. This was resistance of a classically perfect symmetrical triangle pattern. As readers know, I never go into a trade expecting a 70 point move - I get in expecting a level to level move, and hold runners until trailing stopped out in case price provides more, and in Fridays case they paid out massively.
Today, ES tried a relief bounce. My last newsletter was entitled: “Melt-Down For SPX; Is A Big Relief Bounce Coming Next?” and the answer was “sort of”. I concluded my last newsletter by writing: “We just had a 65 point single day selloff …. My general lean though is that we can relief bounce ideally from today’s lows. This would look something like test 4505-11, perhaps dip or base, then push up to the 4530s.” This played out today and after popping to 4511, we got a dip and spent the day building a base
Despite the bounce, today was a very muted session but with FOMC and Wednesday and with this week being the most bearish stretch of the year seasonally, it is sure not to last. Can bulls bounce more? In today’s newsletter I’ll talk this, I’ll then break down in detail the setup that got me short Friday, and provide the actionable trade plan for tomorrow