SPX Is Consolidating For A Major Breakout. What Way? May 12th Plan
As I have stated (nearly) every single day since March, when one zooms out from the financial media hysteria and day to day noise, the underlying technical regime is a “buy dips regime”, and this basic concept has made trading fairly straight forward for two months now, with every 1-2 day dip being bought.
After last Thurs/Friday’s 100+ point vertical rally though, ES has spent this entire week in consolidation mode, building out a range with 4165 or so resistance and 4115 or so support as market repetitively traps “bulls” and “bears”. This week has now featured 4 daily candles, stacked side by side each other to form one of the tightest range weeks of 2023 so far.
Compression leads to expansion, and a big trend move will come out of this. In today’s newsletter, I’ll be talking the pattern forming here, I’ll be providing a visual breakdown of yesterdays lucrative failed breakdown setups (my core pattern), then providing the actionable trade plan for Friday.