Will The 3 Green Day Then Sell Pattern Continue? May 26 Plan
In yesterdays newsletter, I wrote: “We could be in for a chop day before FOMC minutes at 2pm. Ideally, we could see 3970, pullback there, chop in a wide range testing the above supports, then rally to 4010, 4035-40 where we’d dip again”. This has generally played out - we rallied to 3970, pulled back there, spent the entire day chopping in a range, then after FOMC minutes, we rallied again
Today was a green day for ES, but for those tracking it since late March, this has been nothing to celebrate: It has now been 3 days since the low on Friday, and since the March 29th high, every single relief rally failed after 3 days, starting a sharp new leg down to new lows. If this were to continue, tomorrow will be an brutal red day.
At some point though, this cycle is going to need to break and ES will have to put in a more “typical” bear market rally. Today, I’ll talk about what I think happens, the targets I’m looking at, and what levels to watch so you don’t miss the next sell leg