Day of 3 Consolidation For SPX: Breakout Nearing. August 3rd Plan
In yesterdays newsletter, I spoke about how after a very clean week of upside last week, ES had entered into the phase that always comes after trend: Consolidation; with the range generally being 4080 to 4135, with 4105 being a critical pivot to trade around inside it. Consolidation means price will play ping pong between two levels, trap traders, confuse traders and this is exactly what happened today as we filled out this range for Day 3.
Fortunately, consolidation leads to the most explosive trend moves, and provides some of the best Risk/Reward entries that exist. While this range can easily fill out longer, we should see a resolution to it sometime this week. In today’s newsletter, I’m going to talk about trading consolidations, discuss how I traded the fake breakdown setup indicated in last newsletter (my core pattern), then talk the targets for this next leg + risks