ES is 1 Day Away From 7 Red Weeks In A Row; Turnaround Week? May 20 Plan
In yesterdays newsletter, I was looking for a dip down to 3885ish, possible rally to 3930 or 3945, then shot at another leg down. ES decided to undercut 3885 to set a double bottom, then spent the day mostly ping ponging between 3885 and 3930ish zone.
ES is now one day away from incredibly, setting 7 red weeks in a row, and it will be the case unless ES can clear 4025ish tomorrow (which, in a bear market squeeze, would not be hard to do). This is extraordinarily rare to see, and even in 2008s bear market there was no more than 4 consecutive red weeks in a row. Everybody knows how this ends: With a vertical, short crushing green week. As always though, it is timing it that’s difficult - all one can do is know the triggers. Bears are in control of this market, but it is important at those point to know the squeeze triggers: Today I’ll discuss what those are, and what to look out for. Tomorrow is Opex day, so be prepared for volatility.