$ES $SPX monthly 5 ma extension -- Aug sellof 200+ points

ES doesn't like to be extended much more than 100 over its monthly 5ma -- if July sees a rally of 30-40 more points Aug could see a huge selloff especially with the fed July 31

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PSA -- /es will chop itself around finishing around 3040 for a July close. August will see a violent move lower, putting in a low of 2800 (-240 from July close)

Everyone will blame the fed for not cutting rates even though this selloff will happen anyway. Mnuchin will have the PPT step in around the Aug lows to rip us all the way back in to ATH in Sep.

Long story short -- sell Aug open buy Aug close