Consolidation Day For SPX - Volatility Incoming. December 8th Plan
In yesterdays newsletter, I talked about how ES had put in a relatively rare 4 red trend days in a row. This would be only the second time since this new rally leg began on October 13th that ES did so, with the 1st being the Oct 31st to November 3rd period. In doing so, it lost a critical, multi-week channel support at 3960.
I wrote yesterday: “My general lean now is I’d like to see 3960 back-tested and the reaction there will be key”. This played out nicely today and we spiked to 3961 and then rejected. Unfortunately though, that was about it and the market decided to put in a rest/consolidation day, playing ping pong between 3925-3960 all day. The markets of course need to rest, as next week is the combination of ES Futures contract roll CPI, FOMC, and OPEX for what may be one of the most volatile weeks of 2022.
In today’s newsletter, I’ll be talking todays action/what it means, discussing my core trading setup, then talking the actionable plan for tomorrow,