Can ES Make It To Its 200 Day MA? Big Test Incoming: November 15th Plan
After two monster green days, ES finally put in a red day today. As readers know, the reason for the recent extreme rally (starting with a monster green day on Thursday - the largest since the Covid lows) is clear: After CPI last Thursday, ES broke out of a three week, perfect triangle pattern at 3850ish, starting a new leg higher.
We have yet to have the 1st real pullback of this breakout leg and as always the 1st pullback after a breakout - and where it stops - defines how sustainable a move is. This is likely coming up, but there is one major magnet a little above here at 4080: The 200 day moving average. The last major rally leg we had in June got to the 200 day moving average, which was the precise spot it ended and we started the leg to new lows.
The question now is: Can we hit the 200 day moving average on this leg? In today’s newsletter, I’ll be talking about that, discussing what the selloff triggers are, as well as talking about higher-time frame analysis