Is SPX Going To Make Another All Time High This Week? March 19 Plan
My newsletter on Friday was entitled: “SPX Put In Two Red Weeks; First Time Since Oct 2023. Will It Get Bought?”, and the answer to start the day today was yes. As discussed Friday, the reason for the 75 point rally we had from the Friday afternoon low into this morning was no coincidence at all. Rather, it was caused by classic, technical analysis (as all moves are caused by).
What do I mean? On Friday afternoon, we tested a major uptrend line from January at 5170ish. There is nothing more powerful in the market, than a simple, well drawn line and we saw that on Friday and into begin today. I affirmed this in Friday’s newsletter, concluding it by writing: “We tested a major support today, a trendline support from January at 5170ish. As long as bulls can hold it, my lean is to defer to the trend, as always. This would see ES pop higher to 5202 or 5207 target. Dip there likely, then work back to 5220+”. It was for this reason I was holding longs over the weekend, writing: “I am holding my 10% long from the last failed breakdown over the weekend”. ES wasted no time today getting to that 5220+ target, and we got there by this morning, then spent the day basing out.
Is ES basing for another all time high? In today’s newsletter, I’ll talk this, I’ll go over the setup that caused today’s squeeze (and there should be no surprise to readers what it what, it causes all vertical rallies). I’ll then delve a little into short squeezes and the mechanics behind them, then discuss the actionable trade plan for tomorrow.