Spx Is Trying a 2 Week Breakout. Will It Work This Time? Feb 16th Plan
I wrote in yesterdays newsletter: “Because we are in such an intensely choppy environment, there are many levels clustered together so I will remain aggressive taking profits”. Intensely choppy was likely an understatement, and while yesterday’s CPI day featured massive back and forth swings and chop within an 80 point range to close unchanged, today took it to a new level spending most the day ping ponging in a 30 point range before a late day rally.
Zooming out though, the technical reason for the recent chop is clear: As I have discussed daily for two weeks, after the 300 point rally from Jan 19th, ES is doing what it always does after a large move, and has spent this time building a perfect, two week bull flag pattern. This has controlled all my trading for two weeks and this will inevitably produce a large, multi-week move. Today, we tried to breakout again.
It tried this yesterday and failed. Will this shot work? In today’s newsletter, I’ll be addressing this, providing a guide on how I trade and exploit choppy conditions like today, then providing the actionable trade plan for tomorrow.