SPX Bulls Defend Major Support, Can a Few Day Rally Start Here? Sept 8th Trade Plan
In yesterdays newsletter, I talked about how ES was testing a textbook, core trendline connecting the major June and July lows at 3885-90, and if a sustained relief bounce were to trigger after a week+ of non-stop selling, this was the spot. I wrote: “Very simple for tomorrow though - with a small wedge in play + ES testing its rising support from June, if bulls to see a relief bounce, this is the shot. My loose lean is bulls do try here, with a 3980 broad target”. This played out perfectly, and we got to 3980.
With ES putting in a big daily engulfing candle, right off major trendline support, this is as good a setup bulls will get at stringing together some sort of few day relief rally, but we remain in the context of a strong down-trend, where sells come hard and out of the blue.
In today’s newsletter, I’ll be talking how I traded todays price action via yesterdays plan, I’ll then get into what some obvious magnets/targets for this rally leg are (including a major new pattern forming) as well as talk what the triggers to restart the next leg down are.