Pullback Day #1 For SPX. Can Bears Manage Another? August 18th
In yesterdays newsletter, I gave a couple warnings: “Price is in a very difficult inflection point here, and tomorrow will require highly reactive trading”, and “We just had a massive, clean trend phase though which means that more complex trading is probably around the corner”. Today certainly delivered, and we had a 50 point range day that trapped bulls and bears both ways multiple times before ending up essentially where ES opened in 4270s.
Ultimately though, today was a red follow through day, right off the 200 day moving average which was tested from below yesterday for the first time since April. From bears perspective, this would be so far, so good. While bulls still in control of this market, there is room for more dip if bears want it.
In todays newsletter, I’ll be talking how I traded today (the good, the bad, and the ugly), pullback targets, and what bulls need to squeeze this for another leg up direct.