SPX Is Testing A Major 4 Month Resistance; Decision Time. June 2nd Plan
My newsletter yesterday was entitled: “Thursdays And Fridays Have Been Good For SPX Recently. Can It Repeat?”, and the answer was certainly yes. I spoke yesterday about a tendency that has been common in ES for years, but more acutely in the past 8 weeks, and six of the past eight weeks have seen early week weakness, then strong action on Thursday and Friday, and in some cases (like the last two weeks) these squeezes were significant.
The technical reason for today’s pop was no coincidence and is Charting Principles 101. As I discussed last week and shown all week in my below chart: ES broke out last Thursday at 4185-90 of a major triangle pattern, back-tested this week, then rallied today. As I wrote yesterday “Since we broke this out last week, bulls control above it”.
With the breakout last week, the back-test today, then the rally, is it now “clear skies ahead”? In todays newsletter, I’ll address this, then I’ll break down my core trading setup, the failed breakdown which preceded todays major rally; as it does for all major moves. I’ll then discuss the actionable trade plan for tomorrow.