Correction Continues As Recent Lows Are on Watch

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Our View

Yesterday’s action was tricky. While yesterday’s Lean said to sell the 20 to 30-point rallies (and specifically, sell 4502 in the ES), the mood changed with the selloff on Globex.

That Globex dip should have had traders looking to buy the open and if they did, it was a good one. That said, sellers had their chance, too.

The ES rallied 32.50 points off the morning low and 29 points off the opening price, topping at 4501.50. It later hit intra-session highs of 4503.25 and 4502.25, with each high triggering a dip of 10 to 14 points.

That said, there’s a lesson in all of this. In this game you have to be willing to change your opinion quickly or lose in the process. Monday was a two-way tape where you could have been bullish from the open and bought the 10-15 point dips or you could have been bearish and sold the rallies above 4500.

I'm not going to do a big View today. The crowd is short and there are more stops to run on the upside. That said, let’s get more specific now.

I want to remind everyone, Rich Miller — AKA @HandleStats — gave us the S&P yearly and monthly study and will be doing a 30-minute webinar on Wednesday. I will MC the event and then turn it over to Rich. Here is the link to the study. I encourage all readers to jump on this free offer.

If interested in the webinar, please register for the Study on Year Highs and Lows by Month in the SPX on Aug 16, 2023 at 11:30 AM EDT here. (After registering, you will receive a confirmation email containing information about joining the webinar).