Bulls Finally Drop The Ball In SPX. Is The Top In? December 21st Plan

Today ES officially ended its green streak after 9 green days in a row, making this the longest green streak since October 2021, where ES went 10 green in a row, put in one red, then rallied for another 8 days. It was only a matter of time until luck ran out for bulls, and today was the day.

I had warned about this extensively, writing in yesterdays newsletter: “We have just had 9 green days in a row. Obviously in these conditions any further direct upside is pure bonus. It does not mean to short without a proper trigger, but be mindful of this risk if trying new longs. It has been a month and a half now of literally every long working nearly without fail. There will come a point (perhaps even tomorrow) where several support will melt through in a row and we will switch to a temporary “sell bounces”, rather than buy dips regime”. Today, the sell/short trigger was loss of 4810 as provided yesterday, and a little after 2pm, we hit that trigger, and got a multi-level melt down triggering the first short in weeks.

Now what? Was todays sell just a one off dip to be bought yet again? In today’s newsletter I’ll talk this, break down the entire sequence/setup that lead to todays drop as defined yesterday, then discuss the actionable trade plan for tomorrow.