ES Morning Update July 6th 2020

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We close to a top and drop, I can just smell it. My guess is tomorrow... the ol' "Turnaround Tuesday" trick. My only worry is that it might not be the start of the drop to retest the March 23rd low. It could be a "one day wonder" move down that then turns back up and goes back into this choppy slow grind up crap. So lets all keep an open mind that as long as the 3000 SPX area holds (and the double bottom at 2965 for sure) the bulls are still in control.

It's not going to be easy to figure out if the drop will continue or if they chop back up for the rest of July, or at least into the monthly options expiration... and then drop it hard. It certainly is acting like it wants to get back up to the 3233 SPX prior high on June 8th to run the stops over head and then drop hard, which could strecth out into the last part of July if they take their time.

It would setup the last week of this month and early August for the big plunge. But short term we are very overbought and should be about ready (tomorrow maybe?) for a fast drop to that 3000 area. From there it's again... just a feeling, but I think we bounce and do this grind into the July opex with at test of 3233 (and likely pierce, at least in the ES Futures) and then the plunge. I hope everyone had a great 4th of July. God Bless America.

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