First Green Day in 5 SPX - Can Bulls Follow Up Tomorrow? October 25th Plan
Today, ES finally snapped its incredible 5 red days in a row streak - the biggest in 2023. While the relief rally did begin yesterday, the session for ES still closed red and today was the first green day. The fact we had a green day today was no surprise as yesterday ES not only tested its primary bull market trendline from the 2020 COVID lows, but it also put in a failed breakdown bottoming setup of last weeks lows. This combination got me long on Sunday/Monday from 4215, which I added to at the close yesterday 4245 as readers recall from yesterdays newsletter.
I concluded yesterdays newsletter by writing the following: “Bulls have put in their shot today - putting a failed breakdown of last weeks low, a daily hammer candle, and defending the trendline from COVIDs low. This as as good as it will get for them. My loose lean is as long as 4245 keeps holding, we can push back to 4272,base, then try 4297-4300.” This played out precisely today and ES held 4245 overnight and rallied to 4270s this morning, sold back to 4245 again, and continued basing to setup that next leg.
With a green day in the books - can bulls follow it up? In today’s newsletter I’ll be talking this, providing some visual examples of the setup that “caused” the recently rally, then providing the actionable trade plan for tomorrow.