SPX Loses Multi-Month Support Today, Can Bears Run It? Sept 16 Plan
From September 6th low to this Tuesday, traders were spoiled: We had over a week of easy straight trend days. Last week nearly all to the upside, then a massive one directional down-day Tuesday. Markets however alternate between trend, and chop, and the last two days were messy, random, trap-filled chop.
Its not a coincidence where this occurred either, right at core support of a multi-month, perfect rising trendline from Junes low. This line has controlled the entire rally from June, and lines like this do not give up without plenty of confusion first. Late in the day today, this finally broke down. It is worth noting that not only is this a key trendline controlling all the higher lows from the June lows, but it is also support of a major multi-month triangle pattern lasting all year.
The question as always is, now what? In today’s newsletter, I’ll briefly go over how I traded today’s complete mess via yesterdays plan (it a messy day), talk a little about executing on breakdown and failed breakdown setups (my favorite), then talk the plan tomorrow and what this breakdown means going forward.