1 Year Long Support Loss for SPX - Are Bears Back In Control? October 20th Plan

Yesterday, after being in corrective mode for several days following last weeks nearly 200 point rally, ES arrived at the technical equivalent of ground zero - the 4330-36 zone. ES has been in an uptrend for exactly 1 year now, and this uptrend was defined by a single trendline, which happened to fall in this zone. It is no coincidence that we saw some of the most volatile, trap-filled, bipolar price action in many months, packed into a single session today, and it was caused by the arrival at this zone.

I concluded my newsletter yesterday by writing the following: “We are still in the corrective phase following last weeks rally. Importantly, late today we backtested the core bull market trendline from Oct 2022 low at 4330-36. It will be key tomorrow” ES took this 4330-36 zone very seriously, testing it 5x over the past 24hrs, with multiple liquidity grabs below and multiple resultant 30-40 point squeezes, before finally losing it late day and flushing hard.

I wrote yesterday “I’d want 4302 as a target here [for any breakdown]”, and we saw 4302 late day. The question is - now what? ES has lost a major, critical support. In today’s newsletter I’ll talk this, I’ll go over one of my more advanced trade setups (which had a role to play the past couple days), finally I’ll provide the actionable trade plan for tomorrow.