Squeezing Into Resistance: March 23rd Chart and Plan

Today was now the 5th of the past 6 days where ES was up >1% . While this squeeze may shock those who are viewing the market via methods other than price, for a technical analyst there is nothing more expected. We broke a clean down-trendline from January’s high (red below) on March 17th at 4370, and this is what happens.

This is a broken out market and as I’ve written before, focus needs to be longs now as continue the uptrend. That does not mean though that there will not be a sharp pullback. And we are now coming into the zone where I’d expect one. It should be buyable, but we are entering the area now where it is time to manage risk. I will explain why in today’s newsletter