Consolidation Day For SPX - Big Move Incoming? August 1st Plan
Since the March low, ES has been caught in an eerily repetitive cycle (and it is a characteristic feature of bull markets): ES puts in vertical, multi-day squeezes - think the 8 days of consecutive higher highs we had from July 10th to July 19th - then, it goes into days or more often weeks of wide rangebound consolidation under a resistance, and this is what it has done since July 19th. Then, it trends again. Rinse and repeat.
I warned about this extensively in my newsletter on Friday, writing: “4609-4560 remains a complex, trap filled zone, and it will continue to eat up and spit out those who do not trade and think level to level”, adding “4609 remains a brick wall and one of the strongest resistances perhaps in 2023”. What did we do all day? After a nice overnight/morning long, we spent 6 hours glued around the 4609 level, popping above and below it, trapping. Classic, boring, post-trend chop.
Is this finally close to breaking out and trending again? In today’s newsletter I’ll talk this and the patterns forming here, then I’ll break down my core trade (the failed breakdown - an essential tool for navigating these markets) and provide the actionable trade plan for tomorrow.