Three Weeks Of Sideways Action in ES: The Breakout Will Be Big. July 15th Plan

The last two days in ES have been the exact same: Big up and down moves, only to end the day at the exact same spot, this general 3800 zone we are in now. All rallies are sold to return here, and all dips are bought to return here. Why? Because since June 22nd, ES has been in a sideways “summer trading” range, generally bouncing in a 150 point range between the 3750-75 area, and the 3900 area.

This makes for tricky trading that requires major flexibility intraday, as moves frequently start then reverse. This range could easily continue even for a few more weeks, but it will resolve with a multi-week, one directional trend, as all ranges do. Despite the late day rally, bulls are far from out of the woods. In today’s newsletter, I’m going to talk how I traded todays action (the good, the bad, and the ugly), discuss my favorite setup and how it applied today, and talk the plan for Friday/next week.