A Rare Green Day For SPX; Can It Continue? December 21st Plan
After a 374 point decline and 4 straight red down-trending days in a row, ES finally put in a rare green day and its 1st relief bounce of the current sell leg. Notably, this green day formed a daily hammer candle, caused by an overnight miniature capitulation event where ES plunged to 3803 then recovered.
In yesterdays newsletter I wrote: “My general lean is that I’ll be watching the 3810/3795 zones for the possible 1st relief leg of this pullback”. This played out perfectly, and we sold to 3803 overnight, then put in a 50 point relief rally. While a daily hammer candle, after a 374 point sell, into one of the seasonally strongest periods of the year certainly seems bullish, it is important not to forget the broader, bearish context.
In todays newsletter, I’ll be discussing whether bulls can follow this up, talking my core trading pattern, then the actionable trade plan for tomorrow.