Every Bounce Has Been Sold For 6 Weeks, When Does One stick? May 10th Plan
It remains a sell the bounce market in ES. Incredibly, since March 28th, ES has now not had more than three consecutive green days in a row, and even that was only once after last weeks FOMC meeting. The market follows a familiar template and one that is even more familiar to those who have traded bear markets before: Sell off, *violent* short squeeze sometimes lasting a few days sometimes a few hours, then selloff again.
Bulls did have a good chance to put in a low for a few day or even week bounce after Fed last week as discussed in my last newsletter, but dropped the ball and broke down a 10 month triangle pattern on Thursday and since then its been one way downside. 10 month pattern breakdowns don’t end in a few days.
The question on everyone’s minds now is: When do we get a proper relief bounce lasting more then a few days? I do think one is setting up, but this still remains a sell all bounces market after until proven otherwise. Today, I’ll discuss upcoming supports, what bulls need to do to put in a bounce that sustains for more than a day or two