Late August Melt-Up Underway - Pullback Time Now? August 30th Plan
As discussed extensively yesterday, last Friday at 11am, something very significant happened. ES put in my core setup and a major bottoming pattern: The failed breakdown of the prior days low, and since then its been one way traffic to the upside. As readers recall, I got long at 4385 Friday and have been holding since, and this turned into an incredible, 120 point long and these only happen a handful of times a year. I wrote yesterday: “After [the failed breakdown] was registered on Friday at 11am, it means bulls are formally in control and one should be looking for long setups only to add to the position”
I also wrote yesterday: “Since we reclaimed 4408 on Friday (plus the failed breakdown), bulls control. Generally, the bull case from here looks something like base more under 4448, then take the run up the lvls to 4454, 4466, then 4474-76”. This is precisely what happened today and we based under 4448 all night, then took the run up to 4474-76. ES did not stop there, instead running for 4515 which has been my macro target all week as readers know.
The question is, now what? For the first time this month, ES has put in three green days in a row. There are some big resistances overhead now though - can bulls keep it going? Today I’ll address this, I’ll go over the sequence of events that lead to this leg up (its essential to know), then I’ll provide the actionable trade plan for tomorrow.