Is ES Basing For Another Rally Leg? June 1st Plan
After last weeks 6+% squeeze (only the 5th time ES has put in >6% green day in the past decade), ES decided to cool-off today, which is healthy. Previous squeezes we’ve seen, like May 4th after the FOMC meeting, quickly unraveled most the gains the next day, and if bulls are to see another leg higher here, price will need to do more of what it did today: Consolidate and build a base.
In my last newsletter I wrote: “If we start to lose supports, in particular the 4095-4100 zone, it will be a sign to me that Friday’s low volume move may have been a massive low volume trap”. Today, we held that zone, which is a short-term win for bulls. As of now, I do not think we are done on the upside big picture, and there is good technical reason to think some more fuel is in the tanks before bears can step in for a true new leg down.
In todays newsletter, I’ll discuss the upside targets/magnets, what the triggers for deeper selling are tomorrow if price wants that first. Complex trading is ahead