Quietest Day For SPX In 3 Weeks. Calm Before The Storm? August 13 Plan
As I wrote on Friday, last week in ES was truly one for the history books, with ES putting in its largest red day since 2022 and its largest green day since 2022 both in the span of the same week. Weeks like last week are a utopia for systematic, level to level day traders like myself who thrive off large, bi-directional swings, but a nightmare for those who are looking for those one directional trend moves.
Despite the hysteria last week, ES closed the green week and my last newsletter was entitled: “Bullish Weekly Hammer Candle For ES, Can It Follow Through”. The answer to start the day at least, was yes. I wrote in Friday newsletter: “I’d generally see flagging below todays (5380ish) highs and above 5338-42 as being bullish (especially if we flush 5362 and recover)”. Right off the open today, we flushed 5362 and recovered, rallying 30 points and we spent the entire session doing this over and over again, in tight chop. I concluded my newsletter on Friday by writing: “My general lean for Monday though is that 5324 to 5372-78 is now a new consolidation zone, with 5338-42 mid-pivot”. We spent almost all day today just chopping below 5378 as ES rested after Thursday and Fridays monster rally.
Today was a slow consolidation session and after a 200+ point rally from last Wednesday, ES spent today resting. Is it charging up for more upside? In todays newsletter I’ll talk this, I’ll talk some of the quality long setups we saw Friday and today (hint: Almost all longs including Friday’s todays are caused by the same setup; my core setup, the failed breakdown). Finally, I’ll discuss the actionable trade plan for Monday.