Two Green Days In A Row For SPX. First Time In August. Another Incoming? August 22nd Plan
In my last newsletter, I spoke about how after three straight red days, ES finally put in a reversal day on Friday and this was only the third green day in the entire month of August. I wrote this reversal day was “in the form of a bullish hammer candle”. As a result of this, I was holding long over the weekend as written on Friday, with multiple setups to add to this, provided in the last newsletter, which triggered today.
I concluded my last newsletter by writing that my general lean is “That we can bounce more, to 4404, then perhaps 4420s before trying lower”, adding “generally a bull case for Monday involves 4370 continuing to hold, and then back-testing some of the levels that triggered the huge Thursday selloff. This would include 4404, then ultimately 4420”. This is precisely what played out today - we rallied to 4404 overnight, sold down to 4370 major support, it held, then we rallied back up to 4404 and beyond.
ES has done something today for the first time in August: It put in two consecutive green days - a true rarity. The questions is, can bulls keep it going? In today’s newsletter, I’ll talk this, I’ll then breakdown the setup that originally got me long Friday afternoon for this move (its a key one for me). I’ll then talk the actionable trade plan for tomorrow.