SPX Coiling Up For End of Week Fireworks? August 24th Plan
After 170 points of one directional trend move from late last week, ES not unsurprisingly put in a consolidation day today. Trend, consolidate, trend is the never-ending cycle of all markets. It is important to note what did not happen today though. In yesterdays newsletter I talked about how 4160-65 was necessary for bears to hold to keep the newly formed correction leg in play, and they did.
Bulls dropped the ball hard early this week by losing the critical 4200 level. Breaking out from that area on August 11th cleared the old June high, making it the first time since the major March selloff that ES cleared a major high. The failure to hold predictably lead to selling, putting bears in control.
Of course, this week, all eyes are on Jackson Hole Thursday & Friday and its quite likely we see some substantial moves especially after today’s consolidation action. In todays newsletter, I’ll be talking how I traded todays chop via yesterdays plan & trading choppy conditions in general, talk magnets for this pullback leg, and what bulls need to do to turn it around.