Is The Pullback Is SPX Almost Complete? June 23rd Plan
As I’ve written extensively for many weeks, for the past 6 weeks in a row, ES has followed an identical weekly trajectory of Mon-Wed weakness, Wednesday tight chop, then Thursday and Friday strength. This week has continued to track, with ES putting in a good 30 point rally off the lows of the day. This was more muted than the last two weeks which saw 90 points up and 40 points up respectively.
This Thursday/Friday rally tendency has been a common feature broadly in 2023, and this year has had the second strongest performance for Thurs/Fridays in recorded SPX history. While this weeks price action hasn’t been unusual, what has been is that prior to today, ES had put in a rare 3 red days in a row-something that had not happened since May 4th (when the latest 380 point leg up began) and before that, the March low.
Is the dip done? I think there is continued reason for caution. In today’s newsletter, I’ll talk this, then I’ll be talking the setup that produced today’s rally off 4393 support indicated yesterday, and providing the actionable trade plan for Friday.