Did SPX Bulls Drop The Ball? OPEX Day Incoming. Feb 17th Plan

Today is now trading day #12 stuck inside the same range largely between 4100 and 4168 with brief excursions above and below. To further emphasize the intensity of this range, ES has made the full round trip up and down this range an incredible 7 times this month, doing it yet again today.

As readers know, I have discussed the reason for this for weeks, with this consolidation being due to a two week bull flag that has has been building since the start of February. This pattern represents the “cool-off” from the 300 point rally we had starting January 19th. This pattern has tried to break out twice so far, and twice, opting for more consolidation.

This pattern is the technical equivalent of a bomb waiting to go off, and it is just waiting for a catalyst. Today, however, we closed under critical support at 4105-4100, and this has level has held 4x so far in February. Are bulls dropping the ball?In today’s newsletter, I’ll be addressing this, talking my core setup (the failed breakdown) and how it was used to enter near the lows today for the morning long, then provide the actionable trade plan for OPEX day tomorrow.