Is The Pullback Already Over In SPX? November 18th Plan
A week ago today exactly, ES put in its largest green day since the COVID lows, starting a 300 point rally leg. ES spent the last 3 days “digesting” this move by building a choppy, sideways base. Today, this base finally broke down formally triggering the 1st proper pullback of the leg that began last week. The problem for bears? The day barely even had a chance to get going before the same buy the dip tendency that has been active since the October 13th low kicked right back in.
While ES sold off again late day, its no coincidence at all where ES found support this morning: In the ~3920 area, which happens to be the old October highs. ES broke these highs with force last Thursday after CPI, and has now come successfully back-tested. Ever since the October 13th bottoming pattern discussed here, ES has been in buy the dip mode, with all major dips being bought to set higher lows and higher highs on the daily chart.
Will the same be true this time? In todays newsletter I’ll be talking what bulls need to do to end this pullback/triggers, downside targets, and how I traded today’s messy action via yesterdays plan