After 6 Red Days, SPX Puts In A Green Day. Can It Continue? September 29th Plan
ES finally cracked the 6 red day in a row curse, offering a brief respite for bulls after one of the deepest consecutive correction legs of this bear market. Of the major correction leg that began on September 13th, every day has been red except for two, neither of which followed through the next today. Today was different though - ES put in a massive green hammer candle, complete with an overnight wick, engulfing the prior day.
Notably, it also undercut the June lows and recovered, putting in a rare daily chart failed breakdown pattern, which is quite often associated with interim lows. I wrote in yesterdays newsletter “Therefore, my general lean remains unchanged from yesterday which is that we see a bounce into mid 3700s then head lower to 3575”. The 1st part of this played out well tested
While the setup is good for bulls, there are some major risks to be aware of here and not out of the woods yet. In today’s newsletter, I’ll talk targets for this relief leg, dangers in the RSI here, and possible reversal spots.