Last night, ES was saved from complete meltdown: As those following here know, the only pattern that matters in ES now is a perfect triangle pattern (shown in red below) and overnight, ES tried to break it down at 4150, and price immediately sprung back up into the pattern for a fake break down. This is an extremely obvious “save” if you look at the chart, with price precisely dipping below the line then snapping back.
This means two things 1) Bulls get another shot at setting a low, and 2) This is a perfect example of the single most powerful trading setup (and a core part of my strategy): The fake breakdown. This type of setup often leads to major lows/reversals, but with a major FOMC meeting tomorrow, there is a high degree of uncertainty. Decision day coming up, here’s how I’m planning on trading it