*7 Green Weeks In A Row* For SPX, Red Week Now? Dec 18 Plan
Today concluded the 7th green week in a row for ES, which is not something that has happened since August 2017 where ES put in an 11 green week streak. For readers of this newsletter, this should not come as a massive shock, because on November 14th, ES broke out a 4 month downtrend channel which has made me exceptional bullish and mostly “longs only” since then. Technical analysis 101: A 4 month channel breakout produces an equal magnitude/duration rally.
The last week of this rally has been particular extreme which saw an incredible 7 green days in a row. After this run, today was OPEX day, and consolidated as expected. I wrote in my last newsletter: “Tomorrow is OPEX Friday. Anyone trading ES for any period knows what this means, and OPEX days are notoriously the worst for trading. While not always the case, they are characterized by pinning and lack of follow through (extreme trapping)….4772 was the magnet level today and we’ve seen these magnets before where pops above the level get sold, and dips below bought. We could see this with 4772 now and it could be an OPEX magnet tomorrow”. This is exactly what we saw today and 4772 was the OPEX magnet, spending nearly all day glued here and closing right here at the end of the day.
After 7 green weeks in a row for ES, *and* 7 green days in a row, can SPX really manage another green week? In today’s newsletter I’ll talk this, go over yesterdays brief short setup (these have been very rare), then talk the actionable trade plan for Monday.