Biggest Week of 2022 Likely Incoming For SPX, Can Bulls Hold On? Dec 12th Plan

The past two days were full round trip sessions in ES: We rallied from 3925-30 yesterday to 3990, back to 3925-30, up to 3975, then back down to 3925-30 (December contract) to close out the week.

In yesterdays newsletter I wrote: “My general lean is that we continue to chop above 3955 then attempt the push to 3970, 3990, 4015”. I described the 3990 level as a major resistance en route and decent spot to short, and we rallied there, sold, then based all day before a late day selloff.

This type of “round trip” choppy action is not overly surprising given what is coming next week: Next week we have an extremely rare combination of CPI, FOMC, and Quad Witching in the same week, in one of the final weeks of 2022.

This will likely be one of the hardest weeks of the year to trade, and an understanding of core principles is key. In today’s newsletter, I’ll discuss how I’ll be trading these events, the fundamental pattern I am watching, and my actionable plan for Monday.