ES Continues Its Summer Consolidation: Major Catalysts Upcoming. June 7th Chart
Today is officially day 6 of sideways consolidation in ES and we now have six daily candles that are overlapping and stacked side by side. This is the tightest consolidation ES has been in since October 1st to 5th 2021. No trader likes trading these consolidating markets, but the only thing is certain is that the move out of this range will be explosive. As I have discussed, the technical “shape” of this consolidation is a triangle.
It is interesting to note then that the other analogous consolidation that I just mentioned above from Oct 1st to 5th 2021 was also a triangle pattern, and nearly identical in form, but that one came *after* an extended selloff, whereas this one came after an extended rally from May 23rd. In Octobers case, that triangle broke out and started a 500 point move to the upside.
We have major, major catalysts coming up these week and next: CPI Friday, FOMC next Wednesday. Today, I’ll be talking how I think this triangle plays out, how I traded this mess today (the good, the bad, and the ugly) and a couple trap scenarios I’m watching.