The Breakout In SPX Holds, Big Test Incoming. July 21st Plan

Bulls are currently putting in their most serious attempt at a “bottom” since March. Why? As most know, I have been positioned long since 3753 because for the past three weeks, because ES had been building a triangle pattern. The lower highs on June 28th, and July 7th formed the resistance trendline, and this weeks 150 point rally was caused by the breakout.

Pattern breakouts are bullish. Then, yesterday, ES put in its first close above its 50 day moving average since it was originally lost since April. This is commonly seen as “Step 1” of a trend change. These are combined encouraging indications for the long-term bulls/swing traders out there. Today, the breakout held.

The problem? There are still some major resistances lurking overhead, so it is likely still premature for bulls to opening the champagne bottles. In todays newsletter, I’ll be recapping how I traded today via yesterdays plan, talking the major overhead resistances and what I think happens, and then talking the intraday plan for tomorrow.