Hello Everyone,

Wild session today exemplified by a twitter spat (Elon/Trump) weighing on the market. With that said, the SPX/QQQ began the session with a quick pullback with dip buyers buying into discounted prices (normal Fib retracements for a wave 4) followed by a move up to make marginal new highs for both indices. 

On the SPX, I pointed out the equal highs that were formed yesterday (SPX 5990).  These tend to act as a magnet and thus a realistic target which aligned with my SPX 10 minute wave count.  Sure enough, we saw traders run those highs with the SPX topping out near 6000. Once we see price above previous highs with a valid five wave structure, it's NOT the time to chase as it normal to see  retrace (typically at least 50%) which is what unfolded the balance of the session.  We also saw some reporting companies come under selling pressure after reporting tonight (AVGO, LULU, DOCU, etc).  So while we have seen a normal pullback thus far, the bulls will need to hold serve following the Monthly payroll report or risk a break of structure to the downside perhaps kicking off some correction.  Adhere to your plan and let's see how things unfold tomorrow. 

ES Levels Posted in Trading Community (Note: Front Month has Shifted to June ESM25)

Here's a link to Tonight's Newsletter.

Please take a moment to look at the trade ideas.