Breakout for SPX, How Far Can Bulls Go? Oct 19th Plan
I published yesterdays newsletter at around 4:30PM EST, and it was entitled “2 Weeks of Basing Is Close to Breakout In SPX”. I described how I was holding a long and this could not have been more timely, because only 3 hours later in the overnight session, we broke-out and squeezed 70 points. ES tried today to finally breakout of its down-trend channel from the September high (yellow below).
I wrote in yesterday’s newsletter: “I would like to see something like 3730, 3770-3800 then dip”. This played out nicely as we squeezed right up to that 3770-3800 zone then pulled back most the day. While I have been looking for this seasonal “October rally” since we hit 3575, the question is always, will this one fail like the others? It is important to remember that this bear market has been so weak, that ES has been unable to put in 3 straight green days since September 12th. Today is day 2
In todays newsletter, I’ll be talking about whether this rally has legs and the targets, what the failure points are, and how I traded todays wild action via yesterdays provided plan (there were a couple actionable setups).