Is ES Is Charging Up For *Yet Another* Leg Up? Jan 23 Plan

This past month in ES has been a major testament to the idea that simple technicals work in ES, and are not only invaluable but essential for cutting through the endless barrage of noise. As written back in early January, “January 5th was a passing of the baton moment from “sell the bounce” (which we saw for the 1st 4 days of 2024) to buy the dip again” because after a 4 day dip to start 2024, we finally back-tested the zone we broke out from after FOMC on Dec 13th and from there it is technical analysis 101: When back-tests hold, the trend continues, and since Jan 5th every dip has been bought.

This dip buying went into over-drive on Friday, when we finally broke out of a month long bullish inverse head and shoulders pattern/bull flag at 4830, that we had been building since mid-December, and this took ES parabolic Friday. As readers know, I have been long since Wednesday at 4761, for what has been my longest held trade in many months for what turned into a 130+ point gain, and its still going. After 3 days of relentless upside however, ES finally took a breather today, and spent the entire session in consolidation.

I wrote Friday: “Generally the bull case for Monday would look something like test 4880-83, and this would be the spot for bears to try a reaction if there is any to have” and we spent the entire day basing right here today, with bears coming up empty again. Is ES charging up again for more upside? In today’s newsletter I’ll talk this, do a deep dive into the series of setups that caused Friday’s/this mornings monster move, then talk the actionable trade plan for tomorrow.