When Will The Consolidation End? June 8th Plan
Deja Vu once again today in ES and today is now *Day 7* of it doing the exact same thing: Selling into the 4085, trapping shorts, rallying, trapping longs, repeat. Today, it was the shorts who got trapped but the market has done a fairly equal job of trapping both all week. It is very important to zoom out in these conditions, and what is clear is that ES has 7 daily candles stacked side by side.
The range is also coiling: Since the May 30th high it has made higher lows, and lower highs, building a picture perfect triangle. As I discussed yesterday, the last triangle like this we saw was Oct 1st 2021 which resulted in a 500 point upside move. In yesterdays newsletter, I discussed how longs would be triggered >4100 and played out nicely today. In today’s, I’m going to zoom out and focus on another pattern that happens to be forming along side the triangle, but probably has bigger technical implications. I will then discuss how I continue to trade this chop range & balance the risk of a bigger move.