FOMC Next Week - Volatile Week For SPX Incoming. What Way? July 22nd Plan

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.