ES Bases Sideways, Breakout Incoming. May 17th Trade Plan
In yesterdays newsletter, I wrote: “In summary for tomorrow: I would like to see price continue this relief bounce, but we could see a choppy day tomorrow first, a sort of pause day before price continues up with price acting off the supports mentioned above”.
This is precisely what happened today and we had a classic balance, basing, consolidation day (whichever term you prefer to use). They all refer to the same thing - price picking a range and bouncing up and down in it. As most know, these types of bases precede the biggest trend moves, and this is likely where we are headed later this week. Heavy catalysts incoming tomorrow with Powell speaking at 2pm and multiple other Fed speakers throughout the day.
ES has had massive difficulty stringing together consecutive green days for well over a month. Bears control this market fully, and downside is unlikely not over, but there is a setup for relief bounce 1st. Today, I’ll get into the pattern forming since early last week and where this breakout is headed