Final Trading Day of 2022; Can Bulls Continue Todays Rally? Dec 30th Plan
My last newsletter was entitled: “SPX is coiling for a large move” and we certainly got one today. I wrote yesterday: “My loose leans remains unchanged, which is that ES can continue to defend this zone [3810] for a push back to 3835 then 3855”. We sold to 3810 yesterday, spent the night basing there, then got the lift to my 3855 daily target, which cleared early in the session today.
Ultimately though - despite 80 point swings - ES is back at square one where we started the week. The reason for this - is as discussed extensively now - ES is in the process of filling out a triangle pattern with 3810 support and now 3875 resistance. We hit support yesterday, then rallied to resistance today, and and this pattern decides what early January looks like.
Its also worth noting that the infamous Santa Rally seasonal phase still has 3 days left, and this phase has historically ended green 80% of the time over the past 70 years. In today’s newsletter, I’ll be talking the broader pattern here & what it means, my system for trading chop like this week, and the actionable plan for the final day of 2022