Carnage Friday For SPX & More Likely Ahead. August 29th Plan
In Thursdays newsletter, I spoke about how Friday’s Jackson Hole meeting can be extremely significant in terms of market impact/volatility, and it blew away expectations this year, with ES delivering an essentially 150 point, bid-less free fall. Fed news days like these are notoriously though to trade, but the thesis from Thursday played out very nicely, as I wrote: “My lean as of now is we spike up into 4220-30 area, then attempt a rejection lower to 4145, 4120”. 4120 was a trap-door level as I wrote Thursday, and free fall leg #2 began on its failure.
For the past month, ES has essentially been building a large base above the 4115-20 level (forming a head and shoulders pattern) and Friday, broke it down with force. Multi-month base break-downs can start significant trend moves.
But first, ES still has some major supports to contend with. In todays newsletter, I’ll talk how I traded Friday’s wild action via Thursday’s plan (the good, the bad, and the ugly), talk about my core trading setup that I build my strategy around, and then talk the plan for how I’m trading Monday.