Major Test Incoming For ES: June 29th Plan
Since the June 17th low in ES, we have essentially rallied everyday. Today was the 1st pullback of this rally leg off the lows, and as I have written here previously, what the 1st pullback after a breakout or rally looks like is critical to define what comes next. Pullbacks are healthy, but they *must* hold the levels that triggered the breakout originally, and/or critical retracements like the 50% fib retrace or 61.8% fib retrace.
I wrote yesterday: “The overbought RSI is a big concern, and will need to resolve either through sideways chop (todays action) or a deep selloff. It has plenty of room to cool down still, which suggests rocky waters still ahead”. Price chose the deep selloff route, triggering the bear scenario outlined in yesterdays newsletter to 3855, 3805. The good news? The RSI is now corrected. Big test coming up: In today’s newsletter, I will breakdown the actionable setups today and how I traded them (the good, the bad, and the ugly), as well as the setup into July.