Is The Breakout Week Finally Here for SPX? July 18th Plan
A quick glance at the weekly chart now reveals that ES has *five* weekly candles that are stacked side by side, representing the longest basing phase of 2022. Of course, five weeks of consolidation can quite easily produce 5 weeks of trend, and there are no shortage of potential catalysts to explode this range coming up, in particular with the FOMC meeting the week after next.
For now though, we remain rangebound, and this could easily last until FOMC. In the last newsletter Thursday, I wrote how I was running a long position from 3750 and prepared to add >3805 with 3835, 3855 targets, and this played out perfectly closing the day right in that zone. While this is encouraging especially as we near the 3900 lift off zone, there is one major risk I’m tracking which could spoil the parade for bulls and delay any breakout.
In todays newsletter, I’ll be recapping Friday’s trading, talking the pattern forming now that will drive the next few weeks action, how I’m trading it/where I’m looking to add, and talk the one major risk for bulls now.