Last Trading Day of June Incoming & SPX Is Coiled Tight. What Way? June 28 Plan
In both my Tuesday newsletter and my yesterday newsletter, I started it the exact same way: “As I will discuss today (and have already discussed for weeks) almost all the price action since early May has been entirely driven by a singular level: 5519”. This was true Friday, it was true Monday, it was true Tuesday, it was true yesterday. This 5519 level has been the most lucrative level of the 2024 year so far, defending an incredible 10x (inclusive of a few good failed breakdowns) just since Friday, paying out well over 100 points cumulatively.
As I often say, while many are distracted with macro, fundamentals, the latest GDP report, the Fed, “breadth” (none of which will help you with timing the market) simple technicals and often - just a singular level - give you everything you need to trade telling when and exactly where to enter. I concluded my newsletter yesterday by writing: “My general lean is always to defer to the trend. As long as 5516-19 keeps hold we can fill out that 5519-5542 range more, then breakout which would target 5555-60, 5566, then 5575+”. We saw quite literally exactly this today. Last night at 9pm we sold down to 5516-19 exactly, then by the open this morning, we rallied to 5542 then 5555-60.
After all this drama though, we still remain stuck in the same range we have been in for a week now. Can it break tomorrow and what pattern is it? In today’s newsletter I’ll talk this, I’ll do a deep dive into the 5519 level, and the variety of setups we have had off the level in the last couple days. This week has been a masterclass in how my two core setup types can be used to play the same level over and over again - a condition we frequently see in ranges. Finally, I’ll discuss the actionable trade plan for tomorrow.