SPX Is Coiled Very Tight. Move Is Incoming Now. June 27 Plan

I started off yesterdays newsletter by writing: “As I will discuss today (and have already discussed for weeks) almost all the price action since early May has been entirely driven by a singular level: 5519”. This was true yesterday, and once again, it was true today. This level was resistance (now support) of a perfect, 3 month “megaphone” and my upside target from early May. We hit it precisely June 12th after FOMC, then last Monday, broke it out. It was then precisely support on Friday to set daily low. It was precisely support on Sunday. On Monday at the close we put in a failed breakdown below (my core setup) and recovered. Yesterday afternoon we did the exact same thing again, triggering longs.

I wrote yesterday: “Generally though as long as those supports keep hold, we can push up to 5542, then 5550. Perhaps dip, then head up to 5566-68”. This long and this price pathway played out perfectly, rallying to 5550 exactly overnight and dipping as expected this morning. It should be no big surprise then where that dip took us to this morning: 5519, yet again, which tested precisely 2x today, and squeezed back to 5550 again right into the close. Today could not have been cleaner.

We are now coiled extremely tightly in a week long range. What pattern is it forming, and where are we likely to go? In today's newsletter I'll talk this, I'll do a deep dive into the action we have had at the 5519 level including the multiple setups that have triggered off this yesterday (they are quality examples of my two primary setup types). Finally, I'll discuss the actionable trade plan for tomorrow.