Will August Be Seasonally Bearish For SPX? August 2nd Plan.

After a highly eventful June to mid July (where ES rallied and trended cleanly for +390 points), ES has spent the last two weeks doing what it always does after a significant trend: Remained stuck in grinding summer chop since July 19th with ES going nowhere since then, putting in nearly two weeks of candles stacked side by side.

This is something I warned about on Sunday, writing: “4609-4560 remains a complex, trap filled zone, and it will continue to eat up and spit out those who do not trade and think level to level”…adding yesterday “This 4609 level was tested 6 times in the last week with two failed breakouts and is a very strong, stubborn level - likely the strongest this year. It is also a messy “zone” as one can see and largely encompasses the entire space between 4609-4617” and after yet another spike to that zone overnight, ES rejected yet again.

As readers know, 4592 was my critical level to trade today, and after a precise 15 point bounce off it this morning, we chopped all day. In today’s newsletter, I’ll be talking what is next here, providing some examples of my core trading setup (it has been a good week for them, and there will be lots this month), talking seasonality, then providing the actionable trade plan for tomorrow.