SPX Is Basing For A Breakout. April 29th Chart and Plan
We appear to be stuck on repeat in ES all week: On Monday, ES dipped, faked below 4200, rallied 100 points, sold off. Wednesday, ES faked below 4200, and rallied to 4255 into today, then sold off. Today, ES faked below 4200, rallied 100 points again, then dipped into the close on Apple & Amazon earnings.
What does it all mean? It means ES is building a base now, generally in the range of 4200-4300. As usual with bases, this will result in a fairly explosive trend move, with the downside breakout resulting in a larger move than the upside one. The hope for bulls is that its an inverse H&S. In tonight’s newsletter, I’m going to discuss this, and I’m also going to discuss the powerful fake break-down setup (my core trading pattern, and essentially what I’ve traded all week)