Major Breakout Day #2 In SPX, What Is My Target? May 19th Plan
Patience continues to pay off in ES: The past week in ES was technical analysis 101: We spent 10 full days in the tightest range (~50 points) since April 2017 and what happens after ranges? Breakout moves in the direction of the underlying trend, and we got it the last two days. That April 2017 range breakout started a 400 point rally, and these types of range breakouts can sustain for extended periods.
As readers know, I have been long since 4127, and as I have written nearly everyday for a week, my 1st magnet for this rally was 4190s, and I re-iterated this yesterday writing: “Resistance is 4192. I consider this resistance to be a magnet still as I have said for weeks.”, adding “As long as 4147 holds though, we continue higher to 4195ish, dip, then up the levels to 4225”. This played out perfectly today and we squeezed to high 4190s, dipped, the continued up.
Today was breakout day #2. How much more are we running? In today’s newsletter, I’ll address this, talk the setup that triggered the dip buy/squeeze this morning, then provide the actionable trade plan for tomorrow.