Break-out For SPX, How Far Can Bulls Run Though? March 17th Plan
Today played out very nicely in ES. All week, I have talked about the 3885 to 3960 zone in ES, and my lean has been that this zone breaks out to the upside. I wrote yesterday: “As long as 3885 continues defending, we can ping ping more inside the 3955 to 3880 range, then ultimately try the break upwards with first targets being 3975 then 4010”. We got nearly 4k today so far.
In terms of entry spots, I added yesterday: “One could bid 3895-3900 direct, or safer would be to wait for something like 3900 to test then spike back above 3910 to try long”. This morning, we dipped to 3895 in ES which was the low of the day, and then began the leg up. As I have discussed extensively, there is no coincidence where this run started from, with ES spending the week basing at the core bull market trendline from 2020’s lows.
But what now? With ES breaking out of the 1 week range it was in, does that mean it is “all clear”? Not quite - and tomorrow is OPEX day. In today’s newsletter, I’ll be addressing this, talking my trade management process, and providing the actionable trade plan for tomorrow