ES Coiling For a Big Move: June 24th Plan
All week in ES, the game plan here has been fairly simple: We broke out on Monday at 3705 from a base that we spent most of last week in, where 3705 was resistance. Therefore, as written here, I have been holding a small core swing long position, day trading level to level around it, and only focusing on long trades as long as we are above the breakout point at 3705. This has played out well all week closing at the highs today with plenty of buyable dips.
Ultimately though, zooming out, ES is doing the same thing its been doing since June 13th: Building a base on the daily chart around the 3800 level and since June 13th we’ve tested the 3800 zone *5 times*. A break through this zone would likely ignite a fairly significant rally that would probably match or exceed other bear market rallies this year (8-10%). In todays newsletter I’ll be talking the targets, discussing trade management and how I traded the action today (including the textbook fake breakdown into the close) as well as discussing the melt-down triggers for bears