Will SPX Get Its Routine Thursday/Friday Rally? June 8th plan
As readers know, I got long yesterday in the high 4260s buy zone given, looking for 4303, 4317 targets. We got a great rally to 4303 first profit take today, before ES ran out of steam and decided to chop more, and this should come as no surprise. After a 130 point surge last Thursday and Friday, I wrote in my Sunday newsletter: “Just like last week, we spent Monday-Wednesday in a complex post-rally period, and the same will likely be true this week”. This has continued to play out and as I’ve discussed for a week, ES has been stuck in very unusual cycle of weakness from Monday to Wednesday, then massive strength on Thursday and Friday (usually more on Friday though and early Thursdays have been weak).
This cycle has played out for 7 of 9 last weeks now, and while I trade the price action and my system *only* and not temporary price cycles, it has been interesting to note nonetheless. If this pattern persists for another week, this week will be the last as next week is both CPI and FOMC: This should be one of the most volatile, complex weeks of 2023 and will see 50+ point setups for both bulls and bears.
Can bulls manage a final week of late week strength? In today’s newsletter, I’ll be addressing this, discussing my system for trailing stops/staying in trades, then provide the actionable trade plan for Thursday.