The Breakout Has Begun For SPX, Can It Last? May 18th Plan
Patience finally paid off today. I spoke yesterday how the recent consolidation has been the tightest range in years (more specifically, since April 2017 which resulted in a 400+ point breakout move higher) and that a “breakout was close”, and we got it today.
I wrote: “The bull case would look like 4135 reclaims, then triggers back to 4148-52, dip again, then attempt the breakout to 4166, 4172, then ultimately 4190.” This played out perfectly, and we reclaimed 4135, rallied to 4148-52, dipped, then broke out to 4166, 4175. This rally was triggered by a textbook failed breakdown of 4135, and this action shows the power of the failed breakdown setup, and as I often write *all major intraday and multi-day moves start with this pattern*
Today, ES put in a good breakout *attempt* (key word). The question is now, can it sustain and what are the targets? In today’s newsletter, I’ll be breaking down the setup shared yesterday which got me long for this move, talk targets, then provide the actionable trade plan for tomorrow.