Decision Time Coming Up For SPX: August 5th Plan
We just put in two massive green weeks in ES (totally a nearly *9%* gain) so it is not surprising what we have seen plenty of this week: Consolidation. For Monday to Wed, the range was roughly 4140-4080. Yesterday, we broke out, with price spending today stuck mostly between 4135-40 and 4160. The good thing about consolidations- as we have seen many times this month- is they lead to explosive trend moves.
I wrote in yesterdays newsletter: “Keeping things simple, as long we are above 4135-40, my lean continues to be we run to 4200-4210 then try to dip there”. We dipped into 4135, then bounced and consolidated rest of day. NFP tomorrow morning is a catalyst to exit the consolidation.
Big picture though - after rallying for a solid month and a half ES is nearing a major decision zone. In todays newsletter, I’ll be talking how I traded todays action via yesterdays plan (two actionable setups I’ll break down), talk the big resistance overhead, how I think it plays out into late August, and talk some key risks.