Best Trade of 2023 In SPX Played Out - Time For Pullback? July 19th plan
Today, traders got further lesson in just how powerful simple, classic chart patterns can be to cut through the immense amount of noise out there (and its almost all noise). On July 10th, we tested support of a perfect 3 month ascending triangle at 4420 (set the low, triggering my initial longs), then last Wednesday, broke it out, and have been squeezing since for the best trade of 2023.
As written yesterday at the close, I was long going into today’s session, holding my long from 4533 on Monday writing: “As long as those [supports] hold, leg up to 4572 then 4582-85 is play” and today we got yet another squeeze clipping 4582-85 target for yet another fantastic 50 point long from Monday. A core part of my system is holding runners, and these market conditions are perfectly suited for it, keeping me long (though not full sized) for nearly this entire rally from 4420 triangle support last week.
While this run has the best of 2023, we are also nearing some major resistances I have talked about for many weeks. In today’s newsletter, I’ll talk this, then I’ll talk the setup the got me long for this most recent leg up, and provide the actionable trade plan for tomorrow.