Jobs Report Triggers The SPX Breakout. Can Bulls Run It? Jan 9th Plan
My newsletter Thursday was entitled: “Can NFP Tomorrow Finally Break SPX From Its Range?”. The answer was a resounding yes. As readers know, I have repeated the same thing every day for two weeks, writing as long as 3820 holds, bulls remain in control.
I wrote yesterday: “I have said for nearly two weeks that bulls remain in control as long as above 3820 which is 1) support of the white triangle and 2) Support of the blue rising channel from October lows. This would keep a push back to 3895, 3915, then ultimately 3955-65 in play”. Today, we tested 3820, then rallied to 3895, then 3915, and the patience needed for the past two weeks more than paid off.
In classical technical analysis, a two week breakout will often see a roughly equivalent rally, but can it here? In today’s newsletter, I’ll be addressing the big picture, talking my trade management methodology (and how it applied to catching today’s run), then talking the actionable plan for Monday.