SPX Consolidating For Its Next Big Move: August 2nd Plan
In yesterdays newsletter, I wrote: “I expect trading to get much more complex now and tactical” and certainly applied to todays back and forth action. We had three very clean, easy-to-trade, >1% upside trend days in ES last week and periods of trend typically do follow periods of complexity and consolidation. This are periods for tactical, level to level day trading.
ES spent most the day playing ping pong between two pivots given in last nights newsletter: The 4105 area and the 4135 and 4105 offered offered two good trading opps today ( a failed breakdown in the AM and a direct test in the afternoon). Ultimately though, this is consolidation, which means we can expect a big move is incoming.
In todays newsletter I’m going to be discussing my favorite/core trading pattern (failed breakdown setups - there were two today), then talk about the big picture resistances overhead, and how I’ll be trading tomorrow.