Decision Time Coming For SPX: July 22nd Trade Plan
As I wrote about ad nauseum the past few days, ES broke out on Tuesday of a three week long base, which took the shape of a perfect triangle pattern. Today, we are seeing yet again what a classic technical breakout looks like with another big green day, making it essentially five rally days in a row (5 days where ES made a higher high).
In yesterdays newsletter, I wrote my lean was we continue higher to the 4000-4025 zone, with 4004 and 4025 being the specific levels, and we hit 4004 exactly as the high of the day before pulling back. This is where things get interesting.
After breaking out a major chart pattern, reclaiming its 50 day moving average, and rallying for 6 days, ES is now testing its core resistance zone, and what happens here has major implications for if a “bottom” is in. In today’s newsletter, I am going to break down what this means, what I am expecting, and how I’m planning on trading the action into next weeks big FOMC day.