Thursdays And Fridays Have Been Good For SPX Recently. Can It Repeat? June 1st Plan

On Sunday, I spoke about a “hangover effect” stating: “We had a rally and there will be a hangover period” and readers may note some Deja Vu here. Three of the last four weeks (and many weeks of the past few months) have been nearly identical: ES puts in a violent squeeze on Thursday and in particular Friday, then spends the first part of the next week in a “hangover” state, before repeating.

This was certainly the case last week and so far, this week as well. In my newsletter yesterday I wrote: “Bear case tomorrow: Fail of 4213 is the first warning shot” and this failed overnight which triggered two actionable short setups today, something that had been a rarity for the last week. After today’s dip, we have now retraced about 60% of last weeks rally and are back in the sub-4200 congestion zone that has been very familiar since April.

Can it repeat again? In today’s newsletter I’ll talk this, talk about how I traded todays fairly complex action via yesterdays plan and my system (the good and the bad), then provide the actionable trade plan for tomorrow.