4 Massive Green Days In A Row For SPX; Can Bulls Manage 5? November 3rd Plan
As readers recall, I got long back on Sunday evening at 4155 - due to a textbook failed breakdown bottoming setup triggering - and this turned into one of the best trades of the year for a 180 point, four day straight rally. This rally was an example of the power of the short squeeze, something I covered extensively in my newsletters last week. Anyone who has traded any type of correction like the last few weeks, or bear market knows just how powerful these are.
Back on October 27th - preparing for this move - I wrote the following: “The sharpest rallies are not in bull markets or uptrends - they are in downtrends and bear markets….This often means rapid, sometimes multi-hundred point rallies in very short time frames”. Rapid, multi-hundred point rally it was, and this week saw 200 points so far from last weeks low. What was the target for this rally? I wrote yesterday: “4336. remains a major pivot that I have talked about for months - This level is the broad upside magnet now” and we got there today exactly, sitting here into the close.
We are now an incredible 4 massive red days in a row and covering 200 points, making this the largest rally since the broad correction began on August 1st. How much farther does this have to go? In today’s newsletter, I’ll talk this, I’ll then breakdown the setup that started this squeeze (its my core setup, and easy to identify). I’ll then provide the actionable trade plan for Friday.