ES Is Coiling For A Big Move: July 7th Chart
For a full week now, ES has found itself stuck inside a roughly 100 point range between ~3750 and ~3850. We have tested support of this range 4x, resistance 5x, and into the close today pushed above resistance for a breakout. It is quite possible that ES remains coiling for several more days, but as most know, these represent the biggest opportunities: Consolidations, bases, coils produce trend legs.
More important, ES is also at the same price we were in late May. Zooming out to the daily chart, it is quite clear that ES is now in the process of building a two month basing structure. Combined, this all suggests some significant moves in the coming weeks. ES is ultimately still in a relief bounce leg off the June low. In today’s newsletter, I’m going to talk the bigger picture basing pattern forming (there are a few patterns going on now), their targets, and discuss how I traded/trade these consolidating, chop markets.