Can SPX Make It To New ATHs? August 22nd Plan

This has been a summer of extremes in ES. In mid July, we saw the deepest correction of this bull market that began in October 2022, and it culminated with a “Black Monday” crash on August 3rd where ES put in the largest single day sell since September 2022. This was a capitulatory crash, and its why I titled August 5th newsletter, “Has SPX Capitulated?”. That same week we closed the week with a textbook bullish weekly hammer candle, and I entitled my August 9th newsletter, “Bullish Weekly Hammer Candle In SPX, More to Come?”.

More certainly did come, and last week we put in the biggest green week of 2024, clocking in an incredible 8 green days in a row since yesterday for the first time since November 2023. Yesterday, ES took a breather and put in a small red day. Today, I was looking for another pop higher and I wrote yesterday: “My general lean is always to defer to the trend, until supports fail to suggest otherwise. For tomorrow, 5612-5630= a new consolidation/flag zone. As long as it holds, we can push to 5642, 5651, then 5662-5674 which is the next large resistance cluster up”. This played out perfectly, and we tagged 5651 to the tick this afternoon and sold.

Dips continue to get bought. Can SPX make it to new ATHs? In todays newsletter I’ll talk this, I’ll provide some unorthodox examples of my core setup that helped me get long earlier this week (this is an important variant to know). Finally, I’ll discuss the actionable trade plan for tomorrow.