Was Today's Dip The Bottom Already In SPX? June 21st Plan
As readers recall, on Friday I finally closed my remaining runner long from 4405, concluding a 90+ point long. I wrote on Friday: “Some hangover and pullback would not surprise me and I’d love to see a 4430 test” and adding “As mentioned yesterday, for the first time in months I am now growing cautious with longs”. This was certainly timely, and on Sunday evening ES opened ~4460 and began the sell to 4430 target this morning. This flushed this morning, then recovered late day.
In my last newsletter, I wrote: “For 4+ weeks now, the Thursday/Friday squeeze has lead to Monday-Wednesday correction. Same in store next week?” and this pattern continues to play out and this has been true for well over a month now where ES spends Mon-Wed in “hangover mode” basing sideways or chopping, then on Thurs/Friday breaks out and goes vertical.
For the past month though, every two day dip has reliably been bought in ES, and with two red days in the books (and down 80 points), was today’s low it? In today’s newsletter, I’ll talk this, break-down the rare short setup that that occurred Monday, then provide the actionable trade plan for tomorrow.