[RE-SEND] SPX Continues To Consolidate For A Large September Move. Are We Close? September 6th Plan

NOTE: Re-sent due to incorrect chart present in first send out

Low-volume Summer trading is officially over in ES, but traders were certainly slow to re-engage in ES. There is a reason for this. On Friday, I concluded my last newsletter by writing the following: “We just had a significant 4 day trend to the upside, and now it's time to chop and correct. It is important to give markets the time they need after large moves and markets tend to punish those looking prematurely for trend continuation”.

I added “Bear case Monday/Tuesday: Very short term begins on the fail of 4515, which has been an enormously stubborn, trap-prone level”. Stubborn and trap prone it certainly was and for the majority of the session ES was pinned around that 4515 magnet, punishing over-traders, before a late day dip. Zooming out - what does it all mean? After a 180 point rally in the last week of August, ES is basing to setup its next one.

What pattern is forming? In today’s newsletter, I’ll talk this, I’ll then go over the messy past few days of trading this chop and how I navigated it using my core setup/plans provided here - the failed breakdown (which is highly prevalent in chop). I’ll then provide actionable trade plan for tomorrow.