All last week, I wrote extensively about how the ES cycle since late March (3 day rally, then sell to new lows) was bound to break, and it did it in style last week putting in a massive 6% green week. This type of strength is rare and was the largest green week since November 2020 (in that particular case, it marked a bottom). As I wrote in the last update, this rally was no coincidence, and was caused by the breakout of a picture-picture perfect technical downtrend channel from March. This formally ends the immediate down-trend, and puts us in a relief bounce leg.
In today’s update, I’ll talk targets for this bounce, and what bulls need to do to set a “low”