Hello Everyone,
Quick review: Consolidation day (returned to a 3 day balance between ES 4307-4255) as the market is taking a breather following Friday's breakout after the Monthly Payroll report (see Thursday's comments below). As long as the market stays within this range, one should expect two-sided action. Remain flexible and responsive to your triggers.
Thursday's Comments
: Yesterday the SPX rallied off the lows with 5 clean waves to the upside before selling off into the close. Today, the SPX had some slight follow thru to the downside early but (as expected) formed a higher low (after 5 waves up off the bottom you should be looking for at least another wave higher) and then rallied sharply higher before once again fading late. The question now going into tomorrow is if the late session pullback is wave 4 (or part of wave 4) allowing for another push higher within its diagonal (see charts in tonight's newsletter). On the daily chart, you can see the potential for a clean range break (4 month resistance) as well but for now I will be monitoring action within the wedge for clues (project, monitor, adjust). Keeping it simple, the SPX still is making higher highs and higher lows so the bulls remain in control until evidence changes.
We have had some terrific trade ideas again this week so hopefully you were able to catch a few and thanks to all for sharing some other setups. Much appreciated.
ES Support 4285 4268-72 4255 with resistance above 4307 4317 4327 to monitor overnight.
Please take a moment to look at the trade ideas.
