Another All Time For SPX Has Been Set. Where Is This Leg Headed? March 4 Plan

My newsletter yesterday was entitled: “Is SPX About To Make New All Time Highs Yet Again?” and the answer today was a resounding yes. I’ve repeated it daily since Sunday, but ES has followed the exact same cycle for 6 weeks now. It goes as follows: “ES ends the week strong. The last two weeks were case in point where ES went parabolic on Thursday and Friday. It then starts the week with what I call hangover Monday and Tuesday where ES typically pulls back, or chops brutally from Monday often until Wednesday”. This week saw exactly this, dip Monday and Tuesday; melt-up Thursday and Friday.

As readers know, I was positioned long for this move since 5060s yesterday, turning into a fantastic 70+ point gain. I wrote yesterday: “I am still holding my 10% leftover long runner from this mornings failed breakdown”. I adding “My general lean is always to defer to the trend. ES is flagging - as long as 5078-80 lowest holds on dips, we can test 5120-24, perhaps final reaction, then begin working up the levels to new all time highs (5140, 5155-57)”. This played out very well today, and we got to 5140+

As mentioned above and yesterday, this rally was caused by the breakout of a perfect, 3 day bull flag. How much farther can we run? And are we due for another “Monday” hangover? In today’s newsletter I’ll talk this, I’ll do a deep dive into the setup that originally got me long for this 70+ point squeeze (its my bread and butter setup), then talk the actionable trade plan for tomorrow.