Day 6 of Pullback For SPX, How Much More? June 27th Plan

From May 24th low to June 16th high, ES rallied an incredible 334 points, and as discussed extensively, this rally was caused by the breakout of a multi-month resistance at 4280ish, corresponding to the prior February 2023 and May 2023 highs. This was five green weeks in a row, and last week, ES began its first post-breakout correction by finally putting in a red week.

I wrote in my last newsletter on Friday: “Today was a complex session, and Monday should be also. My general lean is that after today’s short, ES can try again on Monday to re-test 4400” adding “We have had a 5 week rally, and its highly unlikely that ES simply resumes straight up without a longer phase of chop or correction”. This certainly described today and we got that re-test of 4400 followed by hours of choppy correction in the same range as Friday.

This tight range though will resolve with a good move. What way? In today’s newsletter, I’ll talk this, talk about my 3 types of setups, then provide the actionable trade plan for tomorrow.