FOMC Next Week - Big Volatility Week For SPX Incoming. What Way? July 24nd Plan

NOTE: This is a resend of the newsletter for Monday July 24th, originally sent out on Friday afternoon, for those who did not receive.

As readers recall, the last 1.5 weeks was my most significant long trade since starting this newsletter (*nearly* continuous long exposure from 4420 June 10th to 4585 stop out this week). The market was largely to “blame” for this -putting in 8 straight days of higher highs with nearly no pullback to trigger stops. On Wednesday, my newsletter was entitled “8 Days Of Straight Upside For SPX - Is There Rug Pull Risk Now?” and on Thursday, we lost the first major support in 1.5 weeks, triggering the first short in the same time period for ~30 points, before bouncing.

I wrote yesterday: “My guess would be that we can now run up to 4584 off 4550s supports, perhaps low 4590s, then try a sell there”. This played out exactly, and late day yesterday we tested 4557, then today we ran to 4590 high of day then dipped. After a 190+ point rally in a little over a week, ES is now in what I call post-trend conditions. It is now time for complex, corrective action.

How will it play out though? In today’s newsletter, I’ll be talking this, then I will break down in detail this weeks short-setup and how I approach shorting in uptrends. I’ll then provide the actionable trade plan for Monday.