SPX Is Charging Up For Another Big Move. What Way? May 23rd Plan
I concluded my last newsletter on Friday by writing: “We have just had a significant, clean, easy rally leg, and this means people know the drill: It is quite likely we get some complex, messy trading now (Mode 2)” and this described today perfectly. As readers recall, the Thursday/Friday action was extremely significant, because ES broke out of the tightest range since April 2017, clearing the April/May 2023 highs and beginning a fresh leg up.
I also wrote on Friday: “As long as 4200 holds a very direct bull case is still in play that looks something like pop to 4216-4221, and play ping pong/build a base before pushing higher to 4246 then 4255-60”. After a quick flush under 4200 when futures opened Sunday (failed breakdown) we rallied to 4221 then spent the day chopping between 4200 and 4221. Very clean rangebound action.
We are now officially Day 3 post break-out. Is more incoming? In today’s newsletter I’ll address this, talk my core setup (the failed breakdown) which setup some good trades today, talk how I’ve managed my long since last week, then provide the actionable trade plan for tomorrow: