Massive Breakout For SPX. What Is The Target Now? July 3rd Plan
As readers recall, for a week now I have discussed at length one single chart pattern: A six day bull flag that formed between June 16th high and this Tuesdays June 26th low. As posted, support of this flag and buy zone was 4372, and this tested precisely on Tuesday which set the low for the week. Yesterday ES formally broke out the flag, and I wrote: “Today ES broke out the bull flag with 4420ish now support”. What happened today? What always happens after a breakout. We got a strong squeeze.
As readers know, I got long late day yesterday, writing in yesterdays newsletter: “Late day today, I decided to add back some long exposure on the back-test of the 4420-22 bull flag”. This bull flag breakout trade played out fantastically well, and from 4422 entry we squeezed 73 points putting in yet another cycle of Thursday/Friday rallies something we have routinely seen all year (and a core characteristic in bull markets).
Today, we are breaking June highs. Are we about to melt up again? In today’s newsletter I’ll be talking this, breaking down the setup that started this squeeze yesterday, then providing the actionable trade plan for Monday/Tuesday.