Hello Everyone,
Quick Note: Today can be summarized as a Gap and Trap (Bull Trap) with price gapping up and traders immediately selling that gap. On the recent bounce, the SPX retraced just over 50% (4513) of the prior decline (4637-4370) and moved down 128 points from high to low during the session. NASTY. I have preached to remain cautious with the current backdrop by adhering to stops and keeping hedges nearby. Hopefully, you have avoided such drawdowns.
Last night I posted in the trading community to be mindful of a potential evening star pattern with today resulting in a big red candle - that's exactly what unfolded. This typically leads to follow thru to the downside so the ONUS is clearly on the bulls here with ES back to support zone 4385/90. Bulls must recapture 4415 to get any upside traction with next support below at 4340.
CAUTION FLAG IS OUT
Please take a moment to look at the trade ideas.
