SPX Is Building Energy For Its Next Move. What Way? July 6th Plan
Last week ES put in one of the best trades of 2023 with a 130 near continuous point squeeze from from last Tuesday to Friday’s high. As readers recall, I was long from 4413 originally and this trade finally trailing stopped out today, completing this fantastic run and requiring a new entry.
Since Friday, I have warned readers that after a clean move, to expect complex and difficult trading to start this week, writing: “What comes after [big trend days]? Mode 2 consolidation where price picks a range, has poor follow through. These markets punish over-traders, those who do not give trades space to work, and those who do not take profit at every level”. This perfectly describes the past three days where ES has trapped longs, trapped shorts, and chopped.
The question now is, when is the next trend leg coming and where to? In today’s newsletter I’ll talk this, then I’ll break down my system for trailing stops (which kept me in my long from 4413), then I’ll provide the actionable trade plan for tomorrow.