Holiday Trading Is Incoming For SPX, What To Expect? December 20th Trade Plan
After last weeks extreme, high volatility, catalyst driven fireworks (FOMC, CPI, all in one week), ES is now settling into lower liquidity holiday trading. As I discussed extensively last week, not only was last week an important week for event-driven catalysts, but it also turned into a very important week technically. As I discussed, ES broke down a multi-week base, lost its 50dma, and lost its 200dma, putting bears in control.
I ended my last newsletter by writing: “If we take out 3855, then its likely another big red day in store, and back short”. Took out 3855 it did, and after spending a long morning chopping, the “sell the bounce” theme that started last week continued unabated. We are now 4 red days in a row for only the second time since Oct 13th low.
Can the bullish Santa Rally phenomena even save this market? In today’s newsletter I’ll be talking holiday trading, short squeeze triggers, and the actionable trade plan for tomorrow Tuesday December 20th