Relief Bounce Day, How Much More Is There For SPX? August 30th Plan

After Friday’s complete melt-down - which saw the biggest red day of the rally cycle off Junes low - ES managed a small relief bounce day today, retracing about a quarter of Friday’s move. In my last newsletter, I wrote: “General lean is we test that blue box (4020) then try a bounce and see if we can get to 4075 at least”. We got to about 4064 as of writing so far before bulls ran out of steam.

Its also important to note where today’s bounce came from: The 50 day moving average, as well as a key multi-year trendline which I will show in today’s newsletter. Despite this, its important not to forget what happened Friday, and we broke down a 3 week major head and shoulders pattern, and did so decisively. Bears remain in control

Until price gets back into the neck line of that pattern, bulls remain in danger. In today’s newsletter, I’ll go over how I traded today via last newsletters plan, talk a little about trendlines and *why* we bounced today, then discuss targets for this relief leg.