First Red Week In 6 Weeks For SPX. Is Another Incoming? June 26th Plan
As readers know, on June 1st, ES put in a multi-month technical breakout, breaking out the February and May highs at ~4280. This was a straight out of the textbook high momentum breakout trade that got me bullish early June, and we rallied 210 points. These last three weeks have been part of an incredible 5 green week stretch - the longest in nearly two years. This week, ES finally ended it by putting in a red week, the first in 5 weeks, beginning a corrective leg.
In yesterdays newsletter, I wrote: “Bear case tomorrow: Very simple and begins on the failure of 4404….If 4404 fails, we start a sell to 4382, 4374 which is a magnet and major support/spot”. This failed first thing this morning and made it clear from the start the type of day we’d be having (sell bounces). We sold off to ~4382 first target down in the morning, bounced to back-test 4404, then got down to 4382 target precise again late day.
While it was a red week - the dip was very slow and labored. What does it mean? In today’s newsletter I’ll talk this, discuss some extremely relevant details around my core trading setup (the failed breakdown) then provide the actionable trade plan for Monday.