After 8 Green Days, SPX Puts In A Red Day. More Selling Incoming? November 10th Plan
Yesterday was an incredible 8th green day in a row for ES (largest green streak since October 2021) but while the first three days of this week were technically green, they were certainly different than the green days we had last week, with ES fundamentally stuck in a consolidation range from Monday until today. Today, that consolidation finally broke down, and shorts triggered.
I wrote in my last newsletter: “We are now in a new consolidation range between roughly 4400 and 4375 ….I consider everything in this range to be difficult, tight, poor-conviction, trap filled chop”. ES certainly fit the bill today, and after a brief overnight/early morning excursion above 4400, we spent all day ping ponging between 4400ish and 4375. In the afternoon, ES finally cracked 4375, triggering shorts and the first real pullback since October 27th.
I wrote in my last newsletter: “If 4375 fails, we can finally begin a pullback. It should be substantial when it triggers” and ES got started on this today. Today was the 1st red day after 8 green. Is red more incoming, and if so, where is the bounce? In today’s newsletter I’ll talk this, I’ll go over some of the rare bearish triggers we’ve had recently and how I trade them, and then I’ll talk the actionable trade plan for tomorrow.