SPX Is Basing For A Move - CPI Catalyst? July 11th Plan
As readers recall, my long target on Friday was 4467-73 where I wrote “If ES is to reject lower, this would be the area”. This is exactly what happened and Friday, ES put in a very uncharacteristic deep late day flush right from there. Where did that flush take us? No surprise - right back to the 4420 level which was key resistance late June, and key support last week.
I wrote on Friday: “I’d particularly like to see this weeks low fail then recover to try longs and I’d be looking to engage that region” and we flushed last weeks low overnight, then reclaimed today and put in a 30 point rally. Despite all this though, ES has largely gone nowhere since late June. As I wrote in my last newsletter: “We are in range trading now 4420-4490 and may stay here for many days or even weeks. This will be a level to level day traders environment”. After a 300+ point June rally, it is now chopping, trapping those with no system, and building energy for its next big move.
Where to from here? In today’s newsletter, I’ll be talking this, as well as breaking down the actionable setups presented via my system the last couple days. I’ll then provide the actionable trade plan for tomorrow.