Is the Bounce Almost Over For SPX? Volatile Week Incoming. September 12th Plan
After starting off September (which as I’ve said many times, is the most volatile, difficult month of the year) with an major 110 point sell, last Thursday ES finally put in the formal setup for a relief rally leg to trigger longs and I was long at the close Friday as written. I wrote about the cause of this extensively in my last two newsletters, writing on Friday: “Why did we get a relief bounce? The same reason we get most [relief bounces], because ES put in a failed breakdown”.
This setup followed through with a squeeze to start today and I wrote in my Friday newsletter: “The relief rally remains in play. This would look something like return to 4524, perhaps dip once more, then push up the levels to 4535, then probably 4554-56”. This played out nicely last night/into today, and we got a grinding up relief rally leg that made it to mid 4540s so far.
ES is now two green days in a row and ~60 points off last Thursdays low, how much more does it have left? In today’s newsletter I’ll talk this, I’ll then discuss the setup provided Friday that produced today’s squeeze, then provide the actionable trade plan for tomorrow. With CPI this week, a volatile week is incoming.