Day 3 of Consolidation: Breakout Soon. March 3rd Chart and Trade Plan

Traders are getting a lesson in rangebound trading. The past few days, I’ve talked extensively about how ES is likely to spend some time bouncing up and down in a big range stating the past two days that after a move like last Friday, when everyone is looking for the next big trend leg up or down “Quite often, price does neither, ping-ponging off levels inside a range for days, then finally breaking out when everyone is sufficiently confused”

That is the case now, and somebody has essentially just pressed the “repeat” button on ES, as it continues to bounce up and down between 4260-80 and 4385-4400. The good news is this should breakout to see a nice trend leg - that is to say several weeks of one directional trading. The bad news is it can easily keep chopping around for several more days. Here’s what I’m looking for