"Rest Day" For SPX After Yesterdays Squeeze. Another Leg Up Incoming? June 14 Plan

Yesterday was a major milestone session for ES and resulted in one of the better trades of the year. For well over a month, I have had a singular macro target 5443-46, which I have written in this newsletter every single day since early May. This level is resistance of a perfect, three month megaphone pattern. Remember charting 101: Megaphones fill out to resistance and this “filling out” produces a multi-hundred point leg up.

I was postioned long on Tuesday at the close prior to CPI/FOMC, writing the following at 4pm Tuesday: “We spent the last week building a base between 5342-5372 or so (bull flag as I tweeted today) and today, we finally broke it out. The bull case is therefore simple: That this just keeps running….This breakout targets the same targets I’ve had all week: 5396, 5421, then 5443-46”….."I am holding my 10% long runner from this mornings 5342 failed breakdown discussed above and letting it ride”. This was a 100+ point long, and it took us right to target.

Yesterday morning at around 10am, we got to this 5446 target. We spent all day yesterday basing there, and continued basing and cooling off below the level today - which should come as no surprise after a multi-hundred point rally into a multi-month resistance. Are we setting up another leg up? In today’s newsletter I’ll talk this, I’ll go into more detail on the setup that got me long for yesterdays 100+ point CPI squeeze, and I’ll discuss the actionable trade plan for tomorrow.