Did SPX Bears Just Ruin Their Only Shot At Downside? July 31st Plan
As I’ve written at length (and will touch on even more today) markets are nothing more than a standardized series of traps and failed breakouts/breakdowns, and yesterday, we got another one late day with ES selling 75 points, only to put in the *biggest bear trap in 2 months*, as the dip was routinely bought yet again.
Fortunately, yesterdays newsletter tracked perfectly to play this. I concluded yesterdays newsletter by writing my general lean for Friday was: “…that ES could try to engage more inside the triangle. Perhaps something like reclaim 4568, run to 4584 or so, dip again, then try back to 4608”. This is precisely what played out. Yesterday evening, ES reclaimed 4568, triggering longs, ran to 4584, dipped 25 points, then rallied right back to 4608 and beyond today. This 4608 level has been resistance for a full week, tested 4x plus one failed breakout.
Is it finally set to break out for good, and did bears drop the ball? In today’s newsletter I’ll answer this, talk the core pattern forming now, do a deep-dive into my core setup failed breakdown setup (and this has been the best week of 2023 for them) then provide the actionable trade plan for Monday.