One Straight Week Of Non-Stop Selling: Important Support Incoming For SPX. May 12th Chart and Plan
It has now been 1 week full week since the FOMC meeting last where ES surged 126 points to the upside, and since then it has been non-stop, relentless selling. There have been dozens of relief bounces, all of which were sold. We got one this morning after CPI, where we spiked down into 3945 and rallied 100 points, and this was a setup discussed yesterday.
This remains a tactical day-traders market: Today sold down 100 points after CPI, rallied back 100 points immediately after, then sold down over 100 points to close the day. Nobody on earth will “forecast” this in advance. You have to know the levels, react to them, catch some points, get out, then reset.
As always, the question now is what’s next? With a week straight of red days, everybody knows how this will end: The same way it always does, with a violent, multi day bear market rally. There are 2 triggers for it I am watching. I’ll get into the big pattern I’m watching today