Is SPX Setting Up Another Leg Higher? June 7th Plan
As readers know, my “macro target” in ES since April has been 4280, and we finally clipped it on Friday after putting in an incredible 1.83 sigma move (a rally of this magnitude only occurs ~4% of days). As I’ve discussed extensively, these Thursday-Friday rallies have become a habit for ES, occurring on 7 of the 9 last weeks.
For the last three weeks, ES has been stuck on repeat mode with Thursday/Friday rally, then Mon/Tuesday chop. I wrote yesterday: “Just like last week, we spent Monday-Wednesday in a complex post-rally period, and the same will likely be true this week”, and “I consider the entire 4280-90 zone as being a new trap zone as I call it” After a great 20 point rally off the ~4267 buy zone provided yesterday, we spent much of the day chopping as expected under 4290.
Is another major late week squeeze incoming? In today’s newsletter I’ll talk this, talk my core setup (the failed breakdown and how one provided an excellent trade today), then provide the actionable trade plan for Wednesday.