Is SPX On The Verge of Another Breakout? Feb 8th Plan
I began yesterdays newsletter by discussing how ES has been in an unequivocal buy-the-dip regime, broadly since the October low when the new uptrend was born, but more acutely since the start of this year, where every dip has been reliably bought in no more than three days, typically much less. This was yet again true today with all intraday dips being bought.
I ended yesterday’s newsletter by warning about tactical, difficult action likely ahead though, but also stating: “My general lean is that we fill out the purple bull flag structure shown in the below chart which has 4175 resistance now, and 4110, 4090-95 supports”. This played out perfectly, spiking from ~4110 in the morning, to 4175 *exactly* to the tick, back down to ~4095, then rallied into late day back to bull flag resistance.
The key word above though is bull flag, and ES has been building a sideways flag pattern for nearly a week now. A move is certainly coming. In today’s newsletter, I’ll talk the big picture setup going forward, discuss how I traded today’s messy action, and then talk the actionable trade plan for tomorrow.