4 Green Weeks In A Row For SPX. Are We Finally Headed Red Next Week? Nov 27th Plan
We are coming out of two days of holiday trading now in ES and nothing happened as institutional money was out of the market. Zooming out though, we have now closed an incredible 4 green weeks in a row. In doing so, ES has gone the entire month of November so far putting in only two proper red days. The fact this extreme trend happened was no coincidence, nor was it an anomaly.
Why? As discussed all month, on November 14th ES broke out a perfect downtrend channel at 4425 from the summer 2023 highs, and this is what 4 month downtrend breakouts look like in classical technical analysis - with little exception. It has produced one of the trades of the year for me. Since Wednesday, however, we’ve been stalled. I wrote back on Tuesday: “My general lean is as long as we keep holding 4536, we can base build 4536-68, then head up to 4580”, and we ran to 4580 target exactly on Wednesday, and its been the high since.
Will bears finally be able to make a comeback next week? In today’s newsletter I’ll talk this, I will breakdown in further detail one of my core setup types (the backtest - it produced a 40+ point squeeze Wednesday). I’ll then provide the actionable trade plan for Monday.