Its Been A Full Week Of Consolidation For SPX - A Breakout Is Close. Nov 29th Plan
After a gigantic 450 point rally so far in the month of November, ES spent the last week in consolidation mode, resting after a historic run. I wrote in yesterdays newsletter: “If it hasn’t been abundantly clear, we are in an extremely tight, difficult range and I consider everything between 4580-4555 to be extreme chop, trade it with caution”.
This certainly described today, and after testing 4555 an incredible 6 times yesterday, we tested it multiple times this morning, spiked to the top of the range close to 4580, then returned to ~4555 again in the afternoon for a total of 12 tests this week. I concluded my newsletter yesterday by writing my general lean for today was: “This means my lean is base building (ideally above 4555), then take a move to 4580+” and we spent most the day basing above 4555 and ran to 4577 high of day.
The question though, is where does this base take us? We remain in an extreme dip buy regime where every single dip of ~30 points in ES has been bought for a month now. In today’s newsletter I’ll talk this, I’ll provide some good examples of my three core setups (and we’ve seen all of them the past few days), then I’ll discuss the actionable trade plan for tomorrow