ES Just Completed A Full Week of Basing: Trend Week Incoming? June 6th Plan

After a nearly historic 7 weeks of red, ES finally put in a major 6% green week the week before last. While many were expecting either decisive follow through last week, or reversal (another big green week for example, or a straight trip back to new lows) ES decided to do what it often does after a major move: Nothing.

It consolidated into a range all week, putting in 4 daily candles stacked side by side next to each other. The range was (and still is) 4190-4070, but in reality the vast majority of the week was spent between 4085ish and 4125. No trader likes trading these types of markets - bulls get trapped, bears get trapped, and nothing sees follow through.

Right now, this consolidation though is beginning to form a fairly obvious triangle pattern on the 4hr chart. While we could fill this out for more complex, choppy trading, I expect we get a breakout one way or another early this week. This will be a tricky week to trade again - In today’s newsletter I’ll discuss my plan for trading it, and why I don’t quite think upside is done (though may be some trapping first)