SPX Is Tightly Coiled For A Big Move. What Way? June 29th Plan
This week has been another victory for what I call Technical Analysis 101: Which refer to simple and repetitive charting principles that help cut through noise and identify trend and entry points. After a 330 point rally from May 24th low, ES just put in its first 6 day pullback last week, and it stopped yesterday at exactly the 4372 level identified for over a week. Why precisely 4372? Because it was the breakout point on June 12th of a textbook 6 month rising channel, and what happens after breakouts? They back-test and rally.
For those who missed it though, today setup several more trades. In yesterdays newsletter, I wrote: “Shorter-term however, the 4400 zone will be key….As long as that zone continues holding, the bull case would look something like pop to 4432-35, perhaps dip to back-test some supports”. This played out perfectly, and we hit 4399.75 in the morning, and rallied to 4431 high of day, then sold off back to 4404.
While we had some nice action today though, ES is ultimately not much changed from where we were since Friday around the 4400 level. In addition, it is also coiling up for a day now. A move is incoming. In today’s newsletter, I’ll talk this, breakdown the setup that triggered this weeks rally off 4372, then talk the actionable trade plan for tomorrow